Around the World's Markets: New York

PHARMACEUTICAL SHARES led US stocks up in late-morning trading after a confirmation of merger talks between drug giants American Home Products and Warner-Lambert.

The Dow Jones was up 37 points, or 0.35 per cent, at 10,618 by midday. The pharmaceutical index was up 13 points, more than 3 per cent, at 393.

"Things are doing better across the board," said one analyst. "The market's really up and doing well."