The market was a mixed bag this morning, as investors continue to pick through the wreckage of earnings pre-announcement season and portfolio managers tidy their books for the benefit of investors in that quarterly tradition called "window dressing."

Microsoft

(MSFT) - Get Report

, meanwhile, was charging up the

Nasdaq Composite Index and paring losses on the

Dow Jones Industrial Average after the Supreme Court decided to send its case back to the appeals court, which had a much friendlier position on the antitrust case. The government's case against Microsoft proposed splitting up the company.

A third-quarter earnings warning from imaging company and Dow component

Eastman Kodak

(EK)

this morning sideswiped the Dow at the open. Kodak was lately off 19.7%, knocking over 68 points off the index. But Microsoft was limiting losses on the blue-chip index, adding some 21 points to the upside.

Other big movers on the NYSE included printing firm

Lexmark International

(LXK)

, which also warned of a third-quarter profit shortfalls after the close yesterday. Lexmark was lately off 25.2% to $38.94.

Lucent

(LU)

, clobbered by rumors of an earnings miss and CEO resignation yesterday, was the NYSE's most active stock, lately flat at $30.88.

The

Nasdaq Composite Index, meanwhile, broke away from the flatline and into the green following the Microsoft news. Softie was lately up 5.7% to $64.75.

Other Nasdaq movers were fiber-optic communications maker

JDS Uniphase

(JDSU)

, which received a bullish call from

Lehman Brothers

. JDSU was lately up 2.1%.

Who knows where this market will end up? Yesterday's session started out strong, with both tech stocks and industrials charging higher in early action, but the Lucent rumors, as well as a buzz that

Cisco

TST Recommends

(CSCO) - Get Report

had lost a major customer, walloped those companies' shares and put pressure on several other tech bellwethers. After adding 60 points of padding in early trading, the

Nasdaq Composite Index did a back flip into the red and ended the day lower.

Today tech bellwethers were mixed so far. Cisco was lately up 2.95%,

IBM

(IBM) - Get Report

was off 1%,

Dell

(DELL) - Get Report

was 1.5% higher, and

Sun Microsystems

(SUNW) - Get Report

was 2.1% higher.

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Bonds/Economy

The 10-year Treasury note was lately down 1/32 at 99 9/32, yielding 5.848%.

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Sector Watch

Transport, drug and retail stocks, as well as brokerages and banks, were weaker today as investors rotated into technology stocks.

Semiconductors were flying on strength in

Micron Technologies

(MU) - Get Report

. Micron was lately up 6%.

Intel

(INTC) - Get Report

somehow wasn't getting any lift from news that the Federal Trade Commission had dropped its antitrust case against the company. Intel has been underwater since last week, when it warned of an earnings miss.

The

Philadelphia Stock Exchange Semiconductor Index

was lately 2.1% higher.

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