Dow Tops 5,400, Sets Fifth Straight Record

Stocks overcame sinking bond prices to end at record heights again Thursday, with the Dow Jones industrials closing above 5,400 for the first time.

Technology issues led the advance.

The Dow industrials rose 9.76 to 5,405.06, setting its fifth consecutive all-time high. The blue-chip index spent most of the day in negative territory, losing as much as 25 points by 3 p.m., before paring its losses in the last hour.

Despite the softness in blue chips for most of the session, advancing issues led decliners by about 11 to 8 on the New York Stock Exchange. Volume was heavy at 458.75 million shares as of 4 p.m., but below Wednesday’s pace.

Stocks rose despite a loss of nearly a point in long-term bond prices, which pushed the yield on the 30-year Treasury up to 6.08 percent.

Stocks pulled ahead of bonds for the first time in a while.

Rao Chalasani, a market strategist at Everen Securities in Chicago, said this was a sign of “an advanced business cycle,” as corporate earnings remain buoyant despite a slowing economy.

Chalasani also attributed Thursday’s stock market performance to strong flows of cash into stock mutual funds.

Some of the stocks that moved substantially Thursday:

NYSE

Toys R Us Inc. rose 1-1/2 to 23-1/2.

The Paramus, N.J., retail toy chain said it will close 25 stores and consolidate some distribution and administrative facilities in a restructuring aimed at becoming more profitable. The company did not say how many jobs would be eliminated.

Barrick Gold rose 1-1/2 to 30-7/8.

Homestake Mining rose 5/8 to 19-5/8.

Placer Dome rose 1-3/8 to 29-1/2.

Gold stocks rose as precious metals futures surged. The active April gold contract was up $4.30 an ounce at $412.80.

Wal-Mart Stores rose 1-3/8 to 21-3/4.

Mutual funds giant Fidelity Investments is said to be a “monster” buyer of Wal-Mart Stores Inc. (WMT) shares, according to CNBC financial correspondent Dan Dorfman.

NASDAQ

Discovery Zone fell 1-7/8 too 1-1/8.

The cash-strapped operator of children’s indoor entertainment facilities said it may have to file for Chapter 11 bankruptcy protection to meet its cash requirements.

AMEX

Echo Bay rose 1/2 to 13-3/8.

Royal Oak Mines rose 7/16 to 4-3/4.

Pegasus Gold rose 5/8 to 16-3/4.

Bema Gold rose 3/16 to 3-1/8.

Gold stocks rose along with gold prices.