Dow Edges Closer To 8,500 Level

The Dow Jones industrial average crossed 8,500 for the first time on Thursday as stocks posted modest gains to extend February’s record-setting rally.

The Dow pulled back slightly before the close, finishing 32.89 higher at 8,490.67, its second straight closing record.

The blue-chip barometer, which rose as high as 8,503 during the final hour of trading, has now rallied about 800 points from January’s low and about 1,500 points from the bottom of late October’s sell-off.

Broader-market indexes also closed at record highs after shaking off another early spurt of profit-taking.

The Standard & Poor’s 500 rose 5.77 to 1,048.67, the New York Stock Exchange composite rose 3.01 to 543.39, and the Nasdaq composite rose 10.63 to 1,777.11, with all three measures setting new highs for the third time this week.

“It’s a continuation of the same pattern: upside momentum and money coming into the market at a very high rate, just business as usual,” said Ricky Harrington, technical analyst at Interstate/Johnson Lane in Charlotte, N.C.

Advancing issues outnumbered decliners by a 3-to-2 margin on the NYSE, where volume totaled 646.92 million shares, up sharply from Wednesday’s pace.

Some of the stocks that moved substantially or traded heavily Thursday:

NYSE

Halliburton, up 2-1/2 at 46-1/2.

Dresser Industries, up 6-1/16 at 44-1/2.

Baker Hughes, up 3-7/8 at 40-5/8.

Schlumberger, up 2-1/4 at 75-7/8.

Halliburton agreed to buy Dresser for stock worth $7.7 billion in a deal that would create the world’s largest oil drilling services company. The proposal calls for Halliburton to exchange one share of its stock for every share of Dresser. News of the deal lifted oil-service stocks.

Toys R Us, down 1 at 26.

The toy retailer announced a shake-up as it warned that its earnings will fall short of expectations after a tough holiday season.

Del Webb, down 2-5/8 at 32.

The Phoenix-based retirementcommunity developer said it is discussing an offer from another party which would value the company at more than $546 million.

NASDAQ

SS&C Technologies, up 4-5/8 at 17-7/8.

The software and consulting company reported better-than-expected fourth-quarter earnings. BT Alex. Brown upgraded the stock to “strong buy” from “buy” after late Wednesday’s report, Dow Jones News Service said.