The markets traded mixed during the midday as falling oil prices tempered news of soaring wholesale inflation. The Dow dropped 41 points to 11,014 while Nasdaq added 5 points to 2218.

On the upside

Coldwater Creek (Nasdaq: CWTR) raised its second quarter and full year outlook to surpass estimates as cost cutting measures begin to take effect.

In an article in the New York Post, Lehman Brothers (NYSE: LEH) CEO Richard Fuld said that the nation's fourth largest investment bank is exploring the possibility of taking the company private.

Genentech (NYSE: DNA) reported higher second quarter earnings as sales rose prompting the biotechnology company to lift its full year outlook.

On the downside

Sonic Automotive (NYSE: SAH) blamed disappointing sales for lowering its earnings outlook for the full year.

Wachovia Capital Markets analyst John Hall downgraded American International Group (NYSE: AIG) and slashed his earnings estimate for the insurer due to exposure to the ongoing credit crisis.

Lehman Brothers lowered its price target and fiscal 2008 earnings expectation for credit card company Capital One Financial (NYSE: COF) as payment delinquencies increase.

In the broad market, declining issues outpaced advancers by a margin of more than 3 to 1 on the NYSE and by more than 7 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks lost a point to 664.