Stocks End Lower

News at a Glance

The Lowdown

The major indexes finished lower after higher energy prices and a joint study from two of the nation's leading pharmaceutical companies offset enthusiasm over earnings. The Dow Jones Industrial Average dropped 29 points to 11467, bringing its streak of three consecutive closes in the black to an end. The Nasdaq lost 3 at 2280, and the S&P 500 dipped a point to 1260.

The mood turned squarely negative after drugmakers Merck (MRK) and Schering-Plough (SGP) said a study of their cholesterol-lowering drug Vytorin failed to reduce the chance of a major cardiovascular event in high-risk patients.

Higher energy prices had put early pressure on stocks. Oil prices got a bounce after nuclear talks between Iran and the U.S. ended without an agreement. Shortly before 4 p.m., crude traded up $2.74 on the day at $131.62 a barrel.

In Washington, Treasury Secretary Henry Paulson warned that economic conditions are going to remain chilly thoughout the summer. "I think it's going to be months that we're working our way through this period -- clearly months," he said Sunday in a television interview.

Paulson is not alone in his assessment. More than half of economists said they expect the gross domestic product to shrink or grow at a rate of 1% or less in the second half of the year, according to a survey conducted by the National Association for Business Economics.

In other economic news, the The Chicago Federal Reserve's National Activity Index improved slightly in June but remained in negative territory. The index stood at -0.60 last month, compared to -1.06 in May. The labor and housing markets kept the index below the line.

The financial sector continued to surprise analysts. Bank of America (BAC) topped expectations on record quarterly revenues. Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) each beat Street estimates last week.

In retail, Hasbro (HAS) posted a better a quarter than analysts had projected. Sales of action figures from the "Iron Man," "Indiana Jones" and upcoming "Star Wars" films boosted revenues.

Another superhero made financial news over the weekend. "The Dark Knight," the latest Batman film, earned an estimated $155.3 million in ticket sales in its opening weekend. That was enough to topple the previous record of $151.1 milllion held by "Spider-Man 3."

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