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Market Update: Nasdaq Fights to End on High Note; Dow Finishes Lower

<LI>Boeing up on raised cash-flow estimate.</LI> <LI>Estee Lauder doesn't look pretty.</LI>

(Updated from 3:22 p.m. EDT)

Still alive and kicking.

There's a bit of fight in the old gal yet -- heading into the last hour of trading, the major indices had gained a foothold. The

Nasdaq Composite, in particular, had clawed its way back into positive territory.

The Nasdaq closed up 32 to 3898. The

Dow Jones Industrial Average was socked down 101 to 10,688, with damage coming from a host of components. The worst performer was



which fell 3.7% and stripping 27 points off the blue-chip average.

Concerns about soaring oil prices and a weak euro have got the market on edge, and investors have made it clear they are in no mood for more bad news, especially of the

profit kind.

Technology stocks have been under the thumb of money managers, who are beginning to believe a slowdown in demand is on the way, thanks to recent declines in consumer spending. But buyers have come back into the big-cap technology bellwethers, lifting a number of those names into positive territory, including


(INTC) - Get Report


Sun Microsystems

(SUNW) - Get Report



(CSCO) - Get Report


Even the

Philadelphia Stock Exchange Semiconductor Index

was back in positive territory; up 0.2% as investors seemed to be lifting the market sector-by-sector: first big-cap tech, then semis and momentum faves.

Elsewhere, the broad

S&P 500 fell 9 to 1451, while the small-cap

Russell 2000 shed 2 to 521.

Dow component


(BA) - Get Report

was one of the Dow's few sources of upside, rising 5.1% on news that it raised its fiscal 2000 free-cash flow estimate to more than $4 billion.

Lehman Brothers


posted third-quarter earnings of $3.37 a share, which beat the 10-analyst estimate of $2.75 a share and was up from the year-ago report of $2.20 a share. The good news was outweighed by weakness in financials earlier, but the stock was off 0.2%.

wrote about Lehman's earnings in a separate



TheStreet Recommends

American Stock Exchange Broker/Dealer Index

was down 0.7%.



was punished 10.3% after it cautioned investors after last night's close that it would report a third-quarter loss between 5 cents to 8 cents a share, missing the five-analyst estimate of a 2 cent profit. The company also warned that it would post break-even results in the fourth quarter, also coming in below the five-analyst estimate of a 6 cent profit.

Estee Lauder

(EL) - Get Report

wasn't looking pretty after

Merrill Lynch

cut its first-quarter and fiscal 2001 top-line growth estimates. In a research note, analyst Heather Hay said the revisions were a result of weakness in the euro and other currencies. It was down an ugly 6.1%

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Sector Watch Internet Index

was 0.3% lower, with

(AMZN) - Get Report

losing 8%. Online auctioneer


(EBAY) - Get Report

set a revenue goal of $3 billion in 2005, implying a revenue growth rate of about 50% annually over the next five years. The stock was up 16.6%.


American Stock Exchange Oil & Gas Index

was off almost 1.2%, as the government mulls tapping into U.S. oil reserves to possibly lower the steep price of oil.


(XOM) - Get Report

was down 1.5%.



was down 1.2%.


Philadelphia Stock Exchange Oil Services Index

was down 2.4%, with


(HAL) - Get Report

down 3.8%.

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Bond prices are falling as oil has resumed its record-setting climb. Continuing the recent trend, long-term yields are rising more than short-term ones, indicating that bond investors are worried about faster inflation as a result of rising energy prices.

With oil trading over $37.50 a barrel for the first time in 10 years, the benchmark 10-year Treasury note lately was down 8/32 to 98 30/32, lifting its yield to 5.892%.

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