(By Salman - iStockAnalyst Writer)US stocks finished mostly higher on Thursday as energy and healthcare stocks climbed after crude oil recovered and drug makers posted better than expected earnings.

The Dow Jones Industrial Average advanced 514.45 points, (+2.02%), to finish at 8,691.25. The S&P 500 gained 11.33 points (+1.26%) to 908.11. The Nasdaq Composite lost 11.84 points, (-0.73%), to end at 1,603.91.

Drug maker Eli Lilly & Co. (LLY) posted a third-quarter loss of $465.6 million, or 43 cents a share compared to profit of $926.3 million, or 85 cents a share, in the same period, a year ago. The company attributed the loss to charge incurred to settle Zyprexa investigations. Excluding one-time items, Lilly would have earned $1.04 a share, up 14%. The company announced that it expects 2008 earnings of $2.44 to $2.49 a share, down from its previous estimate of $3.79 to $3.94 a share. Excluding the Zyprexa charge and other one-time items, it now sees 2008 adjusted earnings between $3.97 and $4.02 a share, up from its previous estimate of earnings between $3.85 and $4 a share. Analysts surveyed by FactSet had estimated earnings of $1.02 a share for the quarter and $3.94 for the entire year. Shares of Eli Lilly & Co. (LLY) rose $1.37 or 4.27% to $33.48 on Thursday.

Merck & Co. Inc. (MRK) climbed 84 cents or 3% to $28.85. Amgen Inc. (AMGN) and Bristol-Myers Squibb (BMY) rose 11.8% and 2.97% respectively after they reported earnings that exceeded analyst estimates.

Midland, Mich. based chemical giant, Dow Chemical Co. (DOW), announced that on Thursday that its third-quarter net income climbed 6.2% on 13% higher sales, beating estimates by wide margin. Net income rose to $428 million, or 46 cents a share, from $403 million, or 42 cents, in the same quarter, a year ago. Adjusted earnings were 60 cents against 84 cents. Revenue rose to $15.41 billion from $13.59 billion. Analysts polled by FactSet Research had forecast 61 cents of profit on $15.74 billion of revenue. In a statement, Chairman and chief executive Andrew N. Liveris said "Dow performed well in the third quarter despite a difficult economy and increased costs". While "a global recession through most of 2009" is likely, the company is "well positioned" to weather the economic downturn,” Liver said further. Shares of Dow Chemical Co. (DOW) soared $2.32 or 10.49% to $ 24.43.

Energy stocks extended their gains as crude oil rose on OPEC output cut hopes. Exxon Mobil CP (XOM) added $5.82 or 9.01% to finish at $70.39. Chevron Corp. (CVX) was up $5.03 or 8.15% at $66.77.
Goldman Sachs Group Inc., (GS) lost 5.4% on reports that the bank is planning to reduce its headcount by 10%, or 3,250 employees.

Technology stocks settled mostly lower. Hewlett-Packard Co. (HPQ) retreated 5.90%. Oracle Corp. (ORCL) lost 1.28% while Sun Microsystems Inc. (JAVA) lost 3.81%.

Shares of Citrix Systems Inc.