Dow Rockets 41.91 Points To Hit Record High

Blue-chip stocks vaulted to new highs Thursday, as weak economic data boosted bonds and reignited investors’ hopes for lower interest rates.

The Dow Jones industrial average climbed 41.91 to 4,808.59, eclipsing its previous high of 4,802.45, which was reached Oct. 19. The Dow index, which was firmly in positive territory all through the session, shot higher in a burst of buying near the end.

Advancing issues led decliners by more than 13 to 7 on the New York Stock Exchange, where volume came to 396.15 million shares as of 4 p.m., up from 377.93 million shares Wednesday.

Leading the market higher were stocks closely tied to the performance of the economy, including transportation, technology and retail issues.

“The current thinking is that if interest rates drop, it’s going to benefit the economy, and benefit the cyclical stocks first,” said Thom Brown, market strategist at Rutherford, Brown & Catherwood in Philadelphia.

Stocks also got a lift from bonds, which began climbing early in the session after the Labor Department said first-time claims for jobless benefits rose by 6,000 last week to a six-week high.

Some of the stocks that moved substantially Thursday:

NYSE

Procter & Gamble rose 1 to 83-3/8.

Merrill Lynch upgraded the stock after the Cincinnati consumer-products concern said it will squeeze an extra 20 percent, or $100 million, in savings from an ongoing restructuring plan.

K Mart rose 1 to 9-3/8.

WalMart rose 1-1/4 to 23-1/2.

Home Depot rose 2-3/8 to 40-3/8.

Gap Stores rose 3-7/8 to 42-3/8.

Best Buy rose 2-1/4 to 23-3/4.

Sears rose 1-3/8 to 36-1/4.

Many retail stocks were higher, despite mixed October chain store figures. CNBC commentator Dan Dorfman said K Mart was a good turnaround story.

NASDAQ

Cytogen rose 1-3/8 to 5-1/8.

Liam Dalton, a portfolio manager at Axiom Capital Management, said the biotechnology developer has a “very good profile” and offers a “terrific risk/reward situation.”

Immunex rose 3-11/16 to 15-11/16.

The company is reviewing a proposal from American Home Products to buy Immunex for $14.50 per share. American Home is an indirect owner of a 54.6 percent stake.

AMEX

Cablevision preferred, 26-1/4, up from an original price of $25.

The company agreed to sell $300 million of convertible preferred stock at $25 per share.