Dow Cruises To Second Straight Record High

Smaller-company stocks completed a sluggish five-month recovery Wednesday, highlighting another record-setting day in Wall Street’s rebound from late October’s sell-off.

The Dow Jones industrial average rose 32.63 to 8,675.75, its second consecutive record high.

Broader stock indicators also posted a modest advance, but it was enough to lift the Russell 2000 index of smaller companies to its first record since Oct. 13.

With no major companies stepping forward with bad news for the second straight day, concerns about last week’s string of profit warnings from Intel, Motorola and Compaq Computer continued to fade.

“Today is just another day in a boring bull market,” said John Shaughnessy, chief investment strategist at Advest Inc. in Hartford, Conn. “It’s a waning of concerns about (the economic crisis in Asia), and the reality that the (U.S.) economy has proven to be stronger than expected.”

Advancing issues outnumbered decliners by a 7-to-5 margin on the New York Stock Exchange, where volume totaled 655.26 million shares, up from 635.57 on Tuesday.

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

NYSE

Waste Management, up 4-1/8 at 29-5/16.

USA Waste, up 3-7/8 at 43.

Houston-based USA Waste agreed to acquire Waste Management, the nation’s largest trash hauling company, for stock worth about $28 a share, or $13.5 billion.

Nashua, up 1-1/4 at 14-1/4.

The Nashua, N.H.-based company agreed to sell its photofinishing operations in the United States, Canada and Britain for $52.5 million and the assumption of certain liabilities. The buyer’s identity wasn’t disclosed.

Swisher International, down 1-5/8 at 13-1/8.

Consolidated Cigar Holdings, down 2 at 19.

General Cigar Holdings, down 2-1/16 at 15-1/4.

Cigar stocks fell amid news that two industry concerns expect to post weak first-quarter results. Consolidated Cigar issued its warning during Tuesday’s session, while Swisher stepped forward after the close.

NASDAQ

Andrew, down 2-1/2 at 22-1/4.

The supplier of communications systems and services warned late Tuesday that it will post disappointing second-quarter results.

Grist Mill, up 2-1/32 at 14-9/32.

International Home Foods agreed to buy Grist Mill for $14.50 a share, or $105 million, in cash. Grist Mill makes private-label cereal bars and fruit snacks.

THQ, down 7-15/16 at 24-1/2.

The publisher of interactive entertainment software and World Championship Wrestling do not plan to renew their license agreement.