Dow Stages Recovery, but Falls Shy of 10,000

Outside the financials, Reuters reported that ImClone (IMCL Quote) agreed to a merger with Eli Lilly (LLY Quote). ImClone gained 3% to $66.89, while Lilly slipped 7% to $38.42.

Among technology stocks, online auctioneer eBay (EBAY Quote) said it would be cutting its staff by 10% and would buy online payment processor Bill Me Later. The stock lost 5.4% to $17.89.

In the commodities space, the price of crude oil dropped $6.07 to $87.81 a barrel, and gold climbed $33 to settle at $866.20 an ounce.

Longer-term U.S. Treasury securities were climbing in price. The 10-year was up 1-12/32 to yield 3.44%, and the 30-year was climbing 2-12/32, yielding 3.96%.

Overseas markets were broadly falling. The FTSE in London and the Dax in Frankfurt were trading lower. Asian exchanges, including Japan's Nikkei and Hong Kong's Hang Seng, closed on the downside.