Dow Edges Up In Volatile Session

Stocks ended a volatile session at record highs on Thursday, as investors concluded from another round of weak economic data that the Federal Reserve might soon ease interest rates.

“Despite the so-called poor economic news this morning about the economy, what everybody’s now talking about is that lower interest rates over time will spur economic growth,” said Leon Brand, global market specialist at NatWest Securities.

Trading was also heavily influenced by strategy ahead of today’s triple expiration of stock options and index futures contracts. The so-called “triple witching,” which occurs every three months, often adds volatility to the market.

The Dow Jones industrial average rose 5.19 to 4,496.27, closing at a record high for the second consecutive session and the 36th time this year. The blue chip index breached 4,500 but couldn’t hold that level.

Advancing issues edged past decliners by 6 to 5 on the New York Stock Exchange, where volume came to 334.64 million shares as of 4 p.m., up from 330 million on Wednesday.

Some of the stocks that moved substantially Thursday:

NYSE

Philip Morris rose 1 7/8 to 72 3/4.

The company said it expects “superior” earnings growth at a Sanford Bernstein conference for analysts. The stock rose on heavy trading despite a report that the federal Centers for Disease Control and Prevention was investigating a possible link of a dozen ailments to the company’s massive cigarette recall. The company issued the recall on May 26 after discovering a chemical used in pesticides in some of its cigarette filters.

Stone Container fell 1 to 18.

International Paper fell 1 1/8 to 79 3/8.

Georgia Pacific fell 1 7/8 at 79 1/8.

Paper stocks fell with other economically sensitive issues after the government released data showing the economy is slowing.

Barrick Gold rose 1/2 to 26 3/8.

Placer Dome rose 1 to 27 3/8.

Sunshine Mining rose 1/4 to 2 1/8.

Gold-mining stocks rose with gold prices.

NASDAQ

Sybase fell 5/8 to 27 7/8

The stock shot up 3 1/2 points on Wednesday on takeover speculation, which was denied.

AMEX

Echo Bay rose 3/8 to 9 3/8.

Royal Oak Mines rose 1/8 to 3 1/4.

Gold-mining stocks rose with gold prices.

Greyhound Lines rose 3/4 to 5 3-16.

The bus company reported higher passenger miles, passenger sales and yield per passenger mile.