NEW YORK (CNN/Money) -
Merck's withdrawal of its arthritis treatment sent the stock tumbling more than 25 percent and pushed the Dow into deeply negative territory at the open Thursday.
The broader market was mixed, in response to some lackluster economic news.
The Dow Jones industrial average (up 58.84 to 10,136.24, Charts) fell 0.6 percent in the early going, weighed down by Merck.
The Standard & Poor's 500 (down 2.85 to 1,111.95, Charts) index lost 0.1 percent and the Nasdaq composite (down 2.82 to 1,891.12, Charts) was up 0.2 percent.
Merck (MRK: unchanged at $45.07, Research, Estimates) announced a global withdrawal of its arthritis treatment Vioxx, following trials that showed it can cause an increased risk of heart attack and stroke. The company also cut its full-year earnings estimates, due to the impact of the withdrawal.
Shares of Merck, a Dow component, fell 27 percent in early trading.
The major indexes had rallied for the previous two sessions on a combination of end-of-quarter maneuvers and some relief about oil prices. However, a rally stalled early Thursday, the last trading day of the month and the quarter.
The number of Americans filing new claims for unemployment rose last week to 369,000 from 351,000 the previous week, the Labor Department said in a report released before the start of trading. Economists surveyed by Briefing.com expected 340,000 new claims.
A separate report showed that personal spending was flat in August, versus expectations for a rise, and that personal income gained, in line with expectations.
Shortly after the start of trade, a report was due on Chicago PMI, a read on manufacturing in the midwest region.
Oil turned higher in the early going, with U.S. light crude edging up to $49.74 a barrel in electronic trading. Brent oil futures added 8 cents to $46.16 a barrel in London.
Treasury prices fell, pushing the 10-year note up to 4.14 percent from 4.09 percent late Wednesday.
In currency trading, the dollar fell against the yen and euro.
In global trade, Asian markets rose Thursday, and European markets were mixed at midday.
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