Stocks Rebound To Another Record

Strong earnings reports and confidence that the economy is growing at a moderate pace pushed major stock indexes to record highs for the second time this week.

The Dow Jones industrial average rose 14.87 to 4,314.70, breaking through its record closing of 4,303.98 set last Monday. The blue-chip index posted nearly all of its gain in the last hour of trading, after languishing for most of the day.

Small-company stocks, led by technology issues for the third consecutive session, outperformed blue-chip issues for most of the day.

“Tech stocks still are acting very well,” said Edward Collins, head block trader at Daiwa Securities America. “I guess the sky’s the limit.”

Stocks rose despite a dip in bond prices, after the Labor Department said new claims for unemployment benefits shot up by 8,000 last week to the highest level in nearly four months, the latest sign of what analysts say is a lukewarm labor market.

The increase in unemployment claims makes it less likely that the Federal Reserve will raise short-term interest rates.

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

NYSE

Chrysler rose 1/4 to 41 7/8.

The stock fell 2 1/2 points on Wednesday amid talk that the investor Kirk Kerkorian would fail in his attempt to take over the automaker.

Sara Lee fell 7/8 to 27 1/8.

The food company said its third-quarter net income rose to 33 cents per share on a primary basis, from 30 cents a year ago. The company declared a 17-cent regular quarterly dividend. But Donaldson, Lufkin & Jenrette Securities downgraded the shares to “market perform” from “outperform,” saying the stock had become expensive.

K Mart fell 5/8 to 13 7/8.

On Tuesday, the discount retailer halved its dividend of 24 cents a share to 12 cents and said it would post an operating loss in the first quarter.

DuPont rose 1 1/8 to 66 7/8.

The chemical company raised its dividend to 52 cents a share from 47 cents, after reporting on Monday that its first-quarter net income rose to $1.40 per share from 94 cents.

NASDAQ

Cirrus Logic rose 8 1/4 to 49 3/8.

The maker of semiconductor controllers said Wednesday that it earned 59 cents per share in the fourth-quarter, counting a currency gain, vs. 48 cents a year ago.

AMEX

Ivax Corp. rose 1 7/8 to 25 7/8.

The Food and Drug Administration approved the company’s application to sell cefaclor capsules in 250 and 500 mg doses.