Stocks started the day on a positive note and the verdict on Merck gave the bullish investors out there another incentive to buy.
Stocks have been following oil prices up and down. And in the meantime, if a company comes with strong numbers, investors stick to it.
With oil prices at these levels and without a clear assessment of how deep and lasting the impact of Hurricane Katrina will be on the U.S. economy, investors are likely to be defensive in regards to stocks.
Investors are likely to remain defensive for a while in regards to stocks. The second half was expected to be great in terms of earnings, but with oil prices at these levels and the hurricane, we might see a sharp drop in results for some companies.
Crude is down, but it's still much higher than it was last year, the same with natural gas. When investors see their October statements, they're not going to be too thrilled and that's not good for November.