Dow Shoots Up 27.46, Tops 5,100

Stocks sprinted higher in late trading Wednesday, lifting the Dow Jones industrial average to its sixth consecutive high and raising some broad market indexes to fresh records.

The Dow industrials rose 27.46 points to 5,105.56, the first close above 5,100 for Wall Street’s best-known indicator. Traders said the index was helped late in the day by computer-driven buying programs.

Stocks were also boosted by gains in bonds and the dollar.

Financial markets got a lift from increased speculation that the Federal Reserve would lower interest rates as soon as the budget crisis in Washington is resolved - possibly early next month - and on expectations that Germany would cut its rates today.

As bond prices rose, yields on 30-year Treasury bonds fell to the lowest level since early January 1994. Falling interest rates make returns more attractive on stocks compared with bonds.

On the New York Stock Exchange, advancing issues had a 7-to-5 lead over declining shares. Volume on the Big Board was moderately heavy at 398.24 million, down from Tuesday’s pace.

Some of the stocks that moved substantially Wednesday:

NYSE

Aetna fell 3-7/8 to 72.

Travelers Group rose 3-3/4 to 58-7/8.

Travelers agreed to buy Aetna’s domestic property and casualty insurance business for $4 billion, creating one of the country’s biggest sellers of the insurance.

Motorola fell 3-1/2 to 61-1/8.

Cowen & Co. downgraded the stock to “buy” from “strong buy.” The stock rose 3-1/4 points on Tuesday.

Baxter rose 5/8 to 42.

The Deerfield, Ill., company said it will spin off its U.S. hospital-supply business, largely undoing a stormy merger with American Hospital Supply Corp.

NASDAQ

Hollywood Entertainment fell 1-7/8 to 17-7/8.

Raymond James & Associates downgraded the stock to “neutral” from “buy.” The Portland company runs retail video stores in several Western states.

Pixar closed at 39, up from original price of 22.

The Richmond, Calif., digital animation studio made an initial public offering of 6 million shares at $22 per share, up from original expectations of $12 to $14.

AMEX

PC Quote Inc. rose 2-1/2 to 20-1/2.

The company unveiled an Internet service jointly developed with Corel Corp.