NEW YORK -- Stocks closed mostly higher today after a bidding war over Warner-Lambert enlivened the drug sector and financial shares rose on the latest sign that inflation is under control. The Dow Jones industrial average was up 30.58 at 10,639.64. Dow rises 30.5
The Standard & Poor's 500 rose 7.71 to 1,362.64. The Nasdaq composite index rose 27.44 to 3,055.95, its fifth consecutive record close. The index, which closed above 3,000 for the first time yesterday, has benefited from renewed optimism about the economy and interest rates.
Advancers beat decliners by a 10-to-9 margin on the New York Stock Exchange, with 1,581 up, 1,455 down and 506 unchanged. NYSE volume totaled 976.68 million shares vs. 900.90 million in the previous session.
The New York Stock Exchange composite index rose 3.26 to 624.72; the American composite gained 3.39 to 807.47; and the Russell 2000 index rose 1.44 to 439.90.
Thirty-year bonds rose 13/32, or $4.06 per $1,000 face amount; its yield fell 3 points to 6.10 percent.
Investors focused on drug stocks for a second straight session after Pfizer made a surprise bid to acquire Warner-Lambert for $82.4 billion. Just this morning, Warner-Lambert and American Home Products confirmed plans to merge in a $71 billion deal. Pfizer and American Home Products fell, while Warner-Lambert soared in afternoon trading. Most other pharmaceutical makers rose as well, as investors looked forward to more drug mergers.
In Europe, stock prices were mostly higher despite interest-rate increases announced today by the Bank of England and the European Central Bank.