Dow Hits 3rd Straight Record Close

Traders and Specialists look at monitors on the trading floor at the New York Stock Exchange a minute before the closing bell rings as the DOW hits a record high second day in a row Wednesday, Oct. 4, 2006. Wall Street barreled higher Wednesday, propelling the Dow Jones industrials to their second straight record high close as investors shrugged off lackluster economic news and grew more optimistic that the Federal Reserve will lower interest rates as the economy cools. (AP Photo/David Karp) (David Karp - AP)

Some traders have questioned the depth of the rally, saying technical markers such as the ratio of advancers to decliners are weaker than they've hoped. And while the Dow has recovered, the S&P 500 still remains more than 11 percent off its all-time high.

Other traders say the market's biggest fears _ high energy prices and additional rate hikes by the Federal Reserve _ are behind it, leaving room for a greater run-up in stock prices.

Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors, said he sees this as a stock market in the more advanced stages of a recovery that has been driven, in large part, by declining energy prices.

In company news, Wyeth fell 28 cents to $50.90 after a Philadelphia jury awarded a woman $1.5 million after finding that the drug company's hormone replacement drug was a factor in her breast cancer. This is the second such case against the company to go to trial; Wyeth won the first.

Wal-Mart Stores Inc. dropped $1.14 to $48.41 after the world's largest retailer reported disappointing September sales. Rival discounter Target Corp. rose $1.05 to $58.68 after it reported a solid sales gain for the month and beat analyst estimates.

Nordstrom Inc. rose 25 cents to $45.44 and Limited Brands Inc. dropped 12 cents to $27.87.

Marriott International Inc., the world's largest hotel company by revenue, said its third-quarter earnings weakened, falling 5.4 percent. But its 33 cents per share net income beat estimates of 30 cents and the stock rose $2.52 to $40.85.

Class A Shares of Berkshire Hathaway Inc., Warren Buffett's investment company, crossed $100,000 a share for the first time Thursday, before retreating slightly. The shares closed up $1,301.00 at $99,000.

The Russell 2000 index of smaller companies rose 9.61, or 1.31 percent, to 743.08.

Consolidated volume on the New York Stock Exchange was 2.73 billion shares, compared with 2.99 billion Wednesday.

Overseas, Japan's Nikkei stock average surged, rising 2.28 percent as investors welcomed Thursday's advance on Wall Street. Britain's FTSE 100 rose 0.64 percent, Germany's DAX index gained 0.48 percent, and France's CAC-40 increased 0.61 percent.

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