Energy, Health-Care Stocks Lead Market Higher

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The U.S. government has reached an agreement with UBS AG (UBS) over a tax case, according to the Justice Dept. The Swiss government, which holds a 9% stake in UBS, says the process concerns around 4,450 accounts. As part of the deal, the U.S. government will withdraw its demands of disclosure of 52,000 UBS account holders' identity and a new treaty request will be submitted concerning the 4,450 account holders now in question. The Swiss government statement does not include any reference to possible fines for UBS.

In company news Wednesday, Merck (MRK) announced that the U.S. District Court for the District of New Jersey has ruled in the company's favor in a patent infringement suit against Teva Pharmaceuticals (TEVA). Teva was seeking FDA approval to sell a generic version of 4, 5 and 10 mg tablets of Singulair (montelukast sodium), Merck's asthma and allergic rhinitis medicine.

Hewlett-Packard posted third-quarter non-GAAP earnings per share (EPS) of $0.91, vs. $0.86 one year earlier, despite a 2% revenue decline (+4% in constant currency). Wall Street was looking for $0.90 EPS. H-P sees fourth-quarter revenue up about 8% sequentially, with non-GAAP EPS of about $1.12. For all of fiscal 2009, the company expects revenue and EPS to be in line with the mid-point of the outlook range provided on May 19, which called for a revenue decline of about 4%-5%, and non-GAAP EPS of $3.76-$3.88.

Deere reported third-quarter EPS of $0.99, vs. $1.32, on a 24% sales drop. The company sees net income of about $1.1 billion for 2009, despite the largest expected single-year sales decline in at least 50 years.

Lincoln National (LNC) entered into a deal to sell its Delaware Management Holdings unit and its subsidiaries, its asset management unit, to Macquarie Group. Lincoln National expects to receive cash consideration of about $428 million, subject to certain closing adjustments.

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