Schaeffer's Today's Market Features: Continental Airlines, EarthLink, Citigroup, Pfizer, and Eli Lilly.

CINCINNATI -- Among the stocks featured in the October 19 edition of Schaeffer's Today's Market are Continental Airlines (NYSE:CAL), EarthLink (NASDAQ:ELNK), Citigroup (NYSE:C), Pfizer (NYSE:PFE), and Eli Lilly (NYSE:LLY). Schaeffer's Today's Market is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. Today's Market is written throughout every trading day by Schaeffer's financial analysts and traders. The entries are quick updates on the day's most notable market activity and news.

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3:15 PM Oil Finishes Higher; Mixed Reports for Airlines

With an hour left in the session, new highs continue to trump new lows in a dramatic fashion. On the New York Stock Exchange, there are 224 new highs, while just five securities have tagged new lows today. Over at the Nasdaq, the margin isn't quite as severe, with 120 new highs and 20 new lows. Appearing on today's new-high list are Hewlett-Packard, Walt Disney, Merck, and Fiserv. Among the names hitting new lows today are Apollo Group and EarthLink.

Early settlement numbers from the energy group revealed increases across the board. Saudi Arabia said today that it would support OPEC-led production cuts of one million barrels per day beginning November 1. Crude futures edged up 90 cents to $58.55 per barrel today, while unleaded gasoline tacked on 0.97 cent to $1.48 per gallon. Heating oil was also in the black.

In equity news, Continental Airlines (NYSE:CAL) has soared more than 1.6 percent to a new annual high after reporting third-quarter profit that nearly quadrupled. Earnings before items totaled $1.36 per share, a dime above Wall Street's consensus view. Revenue at the carrier rose 17 percent to $3.52 billion.

2:15 PM Dow Clings Tenaciously to 12,000

As we head into the final two hours of trading, the major market indices are mixed. In the metals pits, December gold rose $9.90 to close at $602.50 an ounce, tagging its highest finish since October 2. December silver added 34 cents to end at $12.16 an ounce, while December copper tacked on 1.35 cents to close at $3.5095 per pound.

Meanwhile, Treasurys edged lower following the Philadelphia Federal reserve report on October manufacturing, allowing yields to improve a bit. The 10-year benchmark note last was off 3/32 at 100-24/32 with a yield of 4.775 percent.

In equity news, EarthLink (NASDAQ:ELNK) has plunged more than nine percent after reporting a third-quarter loss of $3.18 million, or two cents per share. The company said it expects a fourth-quarter net loss of $15 million to $25 million, or adjusted earnings of $20 million to $25 million.

12:52 PM Philly Fed Index Disappoints

The market has slipped lower as we head into midday trading. The Dow Jones Industrial Average (DJIA - 11,987.7) has dropped five points and the S&P 500 Index (SPX - 1,364.05) has tumbled two points. In economic news, the factory sector in the Philadelphia region was flat for a second straight month in October, according to the Federal Reserve Bank of Philadelphia. The Philly Fed index fell to negative 0.7 from negative 0.4 in September. Readings above zero in the diffusion index indicate most firms surveyed are growing. Economists had expected the index to bounce back to 7.8. The new orders index rose to 13.4 in October from negative 1.3 in September and the shipments index climbed to 5.3 in October from negative 6.8 in September. Furthermore, the price paid index fell to 32.0 in October from 38.1 in September.

11:40 AM Jobless Claims Drop, Natural Gas Inventories Rise

The Labor Department reported that initial jobless claims for the week of October 14 dropped by 10,000 to 299,000, tagging its lowest level since July 22. Economists had forecast an increase of 2,000 to 310,000. Claims rose a revised 5,000 to 309,000 in the previous week, compared with the initial estimate of a rise of 4,000 to 308,000. The four-week average of initial claims fell 5,750 to 307,750, hitting its lowest level since June 24. The number of people collecting state unemployment benefits during the past four weeks rose by 25,000 to 2.45 million in the week of October 7.

Meanwhile, the Energy Department announced that natural-gas inventories rose 53 billion cubic feet for the week of October 13, matching the estimate from Global Insight, but above the 48 billion increase analysts at Fimat USA expected. Total stocks now stand at 3.442 trillion cubic feet, up 391 billion cubic feet from the year-ago level, and 345 billion cubic feet above the five-year average. At last check, the AMEX Natural Gas Index (XNG - 432.40) is up more than one percent.

10:47 AM Leading Indicators Inch Higher

About an hour into Thursday's trading, and the Dow Jones Industrial Average (DJIA - 12,012.6) has sprinted back above the 12,000 level while other market averages are mixed. The Conference Board said its index of leading economic indicators inched 0.1 percent higher in September after posting declines in five of the past eight months. Economists were expecting a 0.3-percent rise in the index. The lagging index inched 0.2 percent higher in September, while the coincident index was unchanged.

Focusing in on leading indicators a bit more, five the 10 readings followed posted gains last month: consumer expectations, money supply, stock prices, jobless claims, and core capital equipment orders. The five that declined were: building permits, factory working hours, delivery times, the interest-rate spread, and new orders for consumer goods. Leading indicators tend to change before the economy responds. Coincident indicators shift at about the same time as the overall economy, while lagging indicators change after the economy does.

In stock news, Citigroup (NYSE:C) is among the horde of companies reacting to earnings reports today. The financial-services giant said its third-quarter net income slipped 23 percent to $5.5 billion, or $1.10 per share. C officials cited the effect of expenses expanding more rapidly than revenue, which was practically flat at $21.42 billion. Earnings from continuing operations ticked up to $1.06 per share from 97 cents last year. On the Street, analysts were expecting per-share results of $1.03 on $21.63 billion in revenue. The stock is lower by about one percent in mid-morning trading.

9:25 AM Drug Companies Post Strong Earnings

Earnings are rolling in this morning from the pharmaceutical sector. Eli Lilly (NYSE:LLY) stated that third-quarter earnings climbed to $873.6 million, or 80 cents per share, while revenue grew seven percent to $3.86 billion. Analysts had forecast earnings of 79 cents per share and revenue of $3.88 billion.

Also from the pharmaceuticals sector, Pfizer (NYSE:PFE) banked a third-quarter profit of $3.36 billion, or 46 cents per share. From continuing operations, earnings hit 44 cents per share, as sales jumped nine percent to $12.28 billion. The Street had forecast earnings of 45 cents per share on sales of $11.4 billion. The group, however, warned that 2007 and 2008 revenue would be comparable to 2006 levels, against earlier predictions of moderate growth. PFE blamed a strengthening U.S. dollar as well as European access and pricing moves.

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