Stocks close higher after rocky week
NEW YORK — Stocks ended an uneasy week mostly higher Friday as a jury verdict against Merck & Co. over its painkiller Vioxx erased much of an earlier advance fueled by bargain hunting. The major indexes all suffered losses for the week.
Wall Street quickly pulled back late Friday after a Texas court found Merck liable for the death of a man who took Vioxx, and awarded his estate more than $250 million in damages. Merck shares dropped $2.35, or 7.7 percent, to $28.06 at the close of trading.
The overall market still managed a small gain as bargain hunters took advantage of recent declines and bought up underperforming stocks. Positive analyst reports on Coca-Cola Inc. and International Business Machines Corp., as well as indications of continued growth in China from Caterpillar Inc., also encouraged investors.
The advance also held despite a jump in crude oil futures, which rose on news of demonstrations in Ecuador that have disrupted oil exports. A barrel of light crude surged $2.08 to settle at $65.35 on the New York Mercantile Exchange.
The Dow Jones industrial average rose 4.30, or 0.04 percent, to close at 10,559.23.
Broader stock indicators finished mixed. The Standard & Poor’s 500 index gained 0.69, or 0.1 percent, to 1,219.71, while the Nasdaq composite index slipped 0.52, or 0.02 percent, to 2,135.56.
Bonds were even despite stocks rising, with the yield on the 10-year Treasury note unchanged at 4.21 percent. The dollar was mixed against other major currencies, while gold prices inched lower.
Trading was expected to be volatile during Friday’s session on Wall Street due to the expiration of monthly futures contracts, which customarily prompts investors to make shifts in their holdings.
While stocks gave up some of their gains after the Merck verdict, the market’s reaction was nonetheless muted as investors had previously factored in major Vioxx liability into the drug maker’s stock. Pfizer Inc., whose painkillers Bextra and Celebrex are similar to Vioxx, fell 33 cents to $25.55.