US stocks finished higher yesterday day as crude oil futures sank, giving both the blue-chip Dow average and the broader S&P 500 their first five-day streaks of gains since the end of July. But a sharp drop in Merck & Co. and worry over an uncertain outcome in the US presidential election limited stocks' advance.
The Dow Jones industrial average rose 26.92 points, or 0.27 per cent, to end at 10,054.39. The Standard & Poor's 500 Index was up just 0.31 of a point, or 0.03 percent, to finish at 1,130.51. The technology-led Nasdaq added 4.88 points, or 0.25 per cent, to close at 1,979.87.
The Wall Street Journal reported that the drug maker Merck tried to bury concerns over its drug Vioxx for years. Standard & Poor's said later it may cut its ratings on the stock.
Meanwhile, crude oil futures sank $1.63 to settle at $50.13 a barrel, nudging back from an earlier drop below $50, on speculation that an election win for Senator John Kerry could ease the geopolitical friction that helped fuel this year's record-breaking rally.
Record oil prices have hampered stocks for weeks as investors fret over the effect of high energy prices on profits.
Many believe a drawn-out post-election legal battle like the one that followed the 2000 vote would benefit bonds, as sheer uncertainty draws investors into safe-haven debt.
"We're marking time now until the election, and if this rally continues, maybe people will think Bush is going to win," said Bill Punk, managing partner of Punk Ziegel & Co.
"As long as we don't have an election where there are delays in finding out who is winning, I think a Bush win will help the market."
Before today's election, Wall Street's immediate concern seemed to be on getting a quick, clear decision. In 2000, the tight race forced a vote recount in Florida, delaying a decision on who had won. The stock market sold off amid the uncertainty.
Nasdaq drew support from PeopleSoft as its shares shot up more than 10 per cent after rival Oracle raised its offer for the software company by $3 per share to $24 in a hostile takeover attempt. Oracle, also a Nasdaq component, rose 13 cents to $12.79.
