EARNINGS GAINS SHOW DRUG MAKERS REBOUND

Merck s second-largest health insurer said profits hurt by stock-option problems. Shares plunged fell $2.16 to $52.05.

HARLEY-DAVIDSON PROFIT DOWN

Sagging U.S. sales and a strike at the motorcycle maker??™s largest production plant caused the drop. Shares rose $1.96 to $63.22.

ALTRIA FIRST-QUARTER PROFIT FALLS

The owner of Philip Morris domestic cigarette sales dropped off more severely than expected. Shares fell 64 cents to close at $69.44.

BANK OF AMERICA

PROFIT UP

The Charlotte, N.C.-based bank said results were helped by growth in fee income. Shares fell 91 cents to $50.91

MERRILL LYNCH PROFIT UP 30 PERCENT

The retail brokerage credited, strong revenue from investments and takeover activity. Shares slipped 55 cents to close at $90.11.

AMD SWINGS TO LOSS

Shares in the chip maker rose 37 cents, or 2.7 percent, to close at $14.28.

CONTINENTAL, SOUTHWEST POST PROFITS

Continental Airlines Inc. put more people on its flights and charged higher fares. Southwest Airlines Co.??™s gained from derivatives that hedge future fuel costs. Southwest shares fell 29 cents to $15.37. Continental fell $2.59 to $41.15.

NEWSPAPERS WEATHER ROCKY QUARTER

Three media companies all reported lower earnings. Tribune Co. shares fell 21 cents to close at $32.48, while Gannett shares slid 71 cents to $57.66. The New York Times shares fell 66 cents to $23.90, and Media General fell 57 cents to $38.52.

Source: [url=http://www.thestate.com/101/story/41203.html]The State[/url]