The Dow Jones industrial average gained 38.49 points to close at 6,765.37, slightly higher than Tuesday's record finish to give the red-hot blue-chip barometer its seventh new high in nine sessions. The Dow, which had briefly slipped into negative territory after surrendering an early 55-point gain, has already advanced nearly 5 percent less than three weeks into 1997.
Broad-market measures also recovered to post modest gains, with several closing at record highs.
The Standard & Poor's 500-stock index rose 2.55 to 769.75, and the NYSE's composite index climbed 1.08 to 406.12. The Nasdaq composite index rose 6.93 to 1,340.46, and the American Stock Exchange index edged up 0.88 to 587.36.
NYSE volume totaled 532.31 million shares, vs. 525.02 million yesterday. Advancing issues led decliners by nearly an 8-to-7 margin on the New York Stock Exchange, with 1,357 up, 1,193 down and 822 unchanged.
Bonds moved lower in the morning after the Labor Department reported that the number of first-
time claims for jobless benefits fell last week to a three-month low. It was the latest in a series of robust economic signals that have undermined hopes that the pace of business has slowed enough to keep a lid on inflationary pressures.
As bonds fell today, the yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs - rose from late yesterday's 6.79 percent to nearly 6.86 percent before settling at about 6.83 percent.
The Dow's biggest gainer was Eastman Kodak Co., which rose $4.25 to $85.25, after the company reported a 40 percent drop in fourth quarter profits, but surpassed analyst expectations.