The first big earnings report of the week was a positive one, as Merck announced a 62 percent increase in third quarter earnings. The company also raised its profit estimate for the year.

The drugmaker, which has been cutting costs in a turnaround effort amid a costly legal fight over the painkiller Vioxx, said revenue rose 12 percent in the third quarter, to $6.1 billion. Merck earned $1.5 billion, or 70 cents per share, compared with $941 million, or 43 cents per share, in the quarter a year earlier. Its earnings a year ago were reduced by  $199.6 million in restructuring charges and by $598 million for legal costs related to Vioxx.

"Our third quarter results reflect the continued progress Merck is making to deliver on our strategy," said Merck's chief executive Richard T. Clark.

The results were helped by its allergy drug Singular, which had sales of $1 billion in the quarter, up 17 percent.

Its cholesterol drugs, Vytorin and Zetia, which Merck has in a joint venture with Schering-Plough also did well, with sales for the two drugs combined rising 26 percent in the quarter.