NEW YORK -- Stocks rose today as investors bought shares of Merck & Co. and other drugmakers on expectations they'll thrive as profit growth at other companies weakens. Dow up 123
U.S. companies' third-quarter earnings fell 1.6 percent, the first drop in seven years, as faltering economies abroad hurt sales and profits.
The Dow Jones industrial average jumped 123.06 to 8,495.03, its biggest gain in 11 sessions.
The Standard & Poor's 500 rose 17.84 to 1,085.93, and the technology-heavy Nasdaq composite index rose 19.84 to 1,757.19.
Advancers outnumbered decliners by an 8-to-5 margin on the New York Stock Exchange, with 1,880 up, 1,178 down and 455 unchanged.
NYSE volume totaled 695.00 million shares, up from 675.16 yesterday. The NYSE composite index rose 8.66 to 536.31, and the American Stock Exchange composite index rose 2.96 to 637.48.
The Russell 2000 index of smaller companies rose 3.01 to 374.48.
The 30-year Treasury bond was up 20/32 to 106 13/32, with the yield falling to 5.08 percent.
Merck, which recently reported a 14 percent in quarterly profit, rose $4 to $136, accounting for 13 percent of the Dow average's gain. American Home Products Inc., which disclosed a 12 percent profit gain, jumped $2.94 to $49.56. Pharmacia & Upjohn Inc. rose $2.81 to $50.621/2 after reporting a 19 percent rise in third-quarter profit today, helped by sales of the baldness treatment Rogaine.
Investors expect that a government report tomorrow on third-quarter gross domestic product will offer clues on whether growth is slowing.