The Dow Jones industrial average rose 9.61 to 5,635.05 after trading narrowly most of the session.

Declining issues outnumbered advancers by about 6 to 5 on the New York Stock Exchange, with 1,070 up and 1,295 down.

NYSE volume totaled 389.96 million shares vs. 447.70 million in the previous session.

Broader indexes dominated by larger companies retreated from modest gains late in the session as bonds weakened further, sending interest rates higher.

The NYSE composite fell 0.23 to 356.41. The Standard & Poor's 500 list fell 0.57 to 664.85.

The Nasdaq composite index rose 5.28 to 1,238.84, closing at a record high for the fourth time in five sessions. The Russell 2000 list of smaller companies rose to its fifth straight new high, gaining 0.65 to 358.76.

The Amex list rose 2.18 to 602.73, the index's third record this week.

"The market's underpinning is still firm despite the retreat in the bond market. There's still universal optimism," that the economy is growing at a sustainable pace, said Michael Metz of Oppenheimer & Co. "Whether these expectations prove justified is another matter."

Bond prices fell after a series of economic readings rekindled some of last week's inflation worries. The yield on 30-year Treasuries - a benchmark rate used to set the interest charged on many kinds of loans - rose above 6.9 percent.