Three's a charm: record close for Dow

NEW YORK — Wall Street rose modestly Thursday, nudging the Dow Jones industrial average to its third straight record high close as investors welcomed upbeat retail sales and jobless claims figures.

The Dow rose 16.08 to close at 11,866.69, surpassing the record of 11,850.61 set Wednesday. The blue chip index traded up to 11,870.06, which stands as its trading high.

Microsoft, one of the 30 Dow stocks, slipped 2 cents to close at $27.92 a share. Boeing, also a Dow stock, fell 34 cents to $83.62.

Broader stock indicators were also higher Thursday. The Standard & Poor's 500 index rose 3.00 to 1,353.22, and the Nasdaq composite index rose 15.39 to 2,306.34.

Rising oil prices didn't smother investors' good mood. A barrel of light crude settled at $60.03, up 62 cents in trading on the New York Mercantile Exchange.

"Considering the distance we've come over the last three months and certainly the last three days, it's interesting we could have a data point like oil's climb and not have the market backup much," said Arthur Hogan, chief market analyst at Jefferies. "It's certainly a scenario where the longer-term prospects for the market are looking more positive."

Stocks pulled back briefly after Charles Plosser, the newly installed president of the Federal Reserve Bank of Philadelphia, signaled that further Fed interest rate hikes may be in the best interests of the economy's long-term performance.

The day's economic news was stronger than expected, with retailers such as Nordstrom, Target and Limited Brands reporting their same-store sales in September surpassed analysts forecasts. Also, the number of new unemployment claims dropped to its lowest level in 10 weeks.

Still, just where stocks are in their long recovery from their 2002-03 lows remains a topic of debate on Wall Street.

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.