Dow Marks 5th Record Close in 2 Weeks

The Dow Jones industrial average broke through 11,900 to close at a record high Thursday, boosted by optimism over the health of corporate earnings.

The index’s gain marked its fifth record close in two weeks as investors focused on positive news from well-known consumer brands such as McDonald’s and on data that indicated the economy was holding up even as it slowed. Oil prices, which remain near lows for the year, also boosted the mood on Wall Street.

“In general, we’re getting friendly reports -- between oil inventories being up higher than expected, and then some bellwether companies that are exceeding estimates,” said John C. Forelli, portfolio manager for Independence Investment in Boston.

The Dow Jones industrial average rose 95.57 points, or 0.8%, to 11,947.70. The advance put the 12,000 threshold within investors’ sights. The previous record close, on Tuesday, was 11,867.17.

Broader stock indicators also moved higher. The Standard & Poor’s 500 index was up 12.88 points, or 1%, at 1,362.83, and the Nasdaq composite index showed the day’s biggest gain, advancing 37.91 points, or 1.6%, to 2,346.18.

Oil prices stayed near their 2006 lows in the wake of an Energy Department report that inventories rose last week and amid doubts about whether OPEC’s members would be able to agree on an immediate production cut. Crude oil futures rose 27 cents a barrel to $57.86 on the New York Mercantile Exchange.

Investors got a look at the state of the economy with the release of the Federal Reserve’s “beige book,” which summarizes regional economic activity. In the report, the Fed said that economic growth appeared to be moderate or mixed -- findings that pleased investors looking for the economy to slow at a reasonable pace.

U.S. Treasury yields were little changed after the release of the beige book. The yield on the benchmark 10-year T-note slipped to 4.77% from 4.78% on Wednesday.

Investors have been keeping close tabs on the Fed as they try to gauge how quickly the economy is slowing. The Fed left short-term interest rates unchanged at its last two meetings after a string of 17 straight hikes.

Investors were unfazed by a Commerce Department report that put the country’s trade deficit at a record $69.9 billion in August, a 2.7% increase from July. Greater oil imports more than offset a record volume of imports of goods and services.

In other market highlights:

* McDonald’s rose 98 cents to $42.23 after saying sales at stores open at least a year rose 9.8% in September. The world’s largest fast-food chain said its third-quarter profit would top Wall Street’s expectation.

* Warehouse chain Costco Wholesale advanced $3.83 to $53.90 after reporting its fiscal fourth-quarter profit rose 1%.

* Yum Brands, parent of the Taco Bell, Pizza Hut and KFC fast-food chains, rose $4.51 to $59.08. The company said after the close of trading Wednesday that its third-quarter profit increased 12%, aided by growth in China. The company raised its full-year profit forecast above Wall Street’s expectation.

* PepsiCo fell $1.01 to $62.85 despite posting a 71% increase in its third-quarter profit. The snack food and soft drink maker said sales rose 9% from the year-earlier period, which was hurt by a tax charge. The company’s forecast, however, was short of Wall Street’s expectation.

* Shares in New York Times rose 96 cents to $23.86 on speculation that it could be a takeover candidate. The newspaper company, which also owns the Boston Globe and more than a dozen local newspapers, has been cited periodically as a potential acquisition target.

“Renewed talk of a possible takeover of the Times has sparked interest in its stock and options,” said Pete Najarian of trading advice website InsideOptions.com. The company declined to comment.

* SAIC, a San Diego-based defense contractor, raised $1.13 billion in an initial public offering, selling 75 million shares for $15 each, people familiar with the offering said. The shares will begin trading on the New York Stock Exchange today under the symbol SAI.

Reuters and Bloomberg News were used in compiling this report.