NEW YORK (CNN/Money) - The Dow Jones industrial average pulled out of an early dive Wednesday morning, turning higher on strength in 3M, Merck and Exxon Mobil.

Around 10:45 a.m. ET, the Dow Jones industrial average rose 108.33 to 7,810.67; it was as much as 182 points lower early in the session. The Nasdaq composite index added 3.65 to 1,232.70. The Standard & Poor's 500 index tacked on 3.45 to 801.15.

3M (MMM: up $2.79 to $114.55, Research, Estimates) has been a bright light during a dark week for the Dow. Earlier this week, the diversified manufacturer issued better-than-expected second-quarter earnings and gave a positive forecast for the rest of this year.

Drugmaker Merck (MRK: up $1.65 to $40.70, Research, Estimates) said late Tuesday that its board of directors has approved a $10 billion stock buyback program and announced a quarterly dividend of 36 cents per share.

Banc of America upgraded Exxon Mobil (XOM: up $1.46 to $32.38, Research, Estimates) to "strong buy" from "buy."

Worries about financial services companies have exacerbated the stock selling in the last few sessions. Citigroup (C: up $0.30 to $27.30, Research, Estimates) and J.P. Morgan Chase (JPM: Research, Estimates) have come under intense scrutiny for their involvement in the Enron debacle. On Tuesday, the companies were accused at a Senate hearing of helping the bankrupt energy trader manipulate its financial statements. J.P. Morgan is defending itself against these charges Wednesday.

Congressional investigators looking at claims that Martha Stewart may have engaged in insider trading in her dealings with ImClone Systems (IMCL: Research, Estimates) asked for more records from Merrill Lynch (MER: down $1.11 to $32.69, Research, Estimates), whose brokers were involved in trades before a big regulatory setback for one of the company's drugs.

Dow component DuPont (DD: up $0.91 to $37.96, Research, Estimates) posted stronger results that topped analysts' estimates, but the chemical maker warned that third-quarter results will miss current forecasts. German electronics and engineering firm Siemens (SI: down $2.35 to $47.15, Research, Estimates) also issued a warning for its fiscal fourth quarter; it also reported weaker third-quarter results that nonetheless topped estimates.

European markets fell sharply in midday trading, while Asian markets sold off sharply, in response to the U.S. selling.

Treasury prices surged, sending the 10-year note yield down to 4.29 percent from 4.47 percent late Tuesday. The dollar weakened against the yen and euro, which remained below $1.

Brent oil futures added 23 cents to $25.27 a barrel in London, where gold slipped in early trading.

Market breadth was negative. On the New York Stock Exchange, losers topped winners more than 7-to-1 as 448 million shares changed hands. On the Nasdaq, decliners beat advancers 7-to-2 as 490 million shares traded.

Shares of Internet retailer Amazon.com (AMZN: down $1.42 to $13.13, Research, Estimates) traded lower after the company said it would expense stock options. This news seemed to overshadow the company's quarterly results. It lost a penny a share, a nickel less than what Wall Street was expecting and far less than the 16 cents it lost one year earlier.

Fast-food retailer and Dow component McDonald's (MCD: Research, Estimates) posted a second-quarter operating profit of 39 cents a share, a penny above estimates and above the 34 cents earned in the year-earlier period.

Other factors in market action: Salomon Smith Barney equity strategist Tobias Levkovich has cut his 2002 targets for the S&P 500 to 1,000 from a range of 1,200 to 1,250 and the Dow industrials to 9,650 from 11,200, citing "corporate rot."

Trading rumors suggested that there may be an emergency Federal Reserve intervention, while Fed fund futures suggest a quarter point reduction in the overnight bank lending rate has at least a 50 percent chance of taking place.

The losses Wednesday further highlighted the drastic blow to investor confidence that has knocked markets lower for months. The Dow has fallen in each of the last nine weeks.