Dow up 19
to record territory

NEW YORK -- Stocks ended a technically driven session in record high territory today, but only after the Dow Jones industrials cut their early gains by two-thirds late in the session.

Absent new economic news, stock indexes managed moderate gains as traders adjusted their portfolios to accommodate a triple expiration of options and futures contracts.

The Dow Jones industrial average rose 19.45 to close at 7,796.51, a record. Decliners led advancers by 4 to 3 on the New York Stock Exchange, with 1,491 down, 1,141 up and 778 unchanged. NYSE volume totaled 652.73 million shares vs. 536.90 million yesterday.

Most broad-market indexes also hit record highs, although the broader market underperformed the blue-chip sector.

The Standard & Poor's 500-stock list rose 0.71 to 898.70, the NYSE's index rose 0.08 to 467.84. and the Nasdaq index rose 0.46 to 1,447.60; all were record closes.

But the American Stock Exchange composite index fell 5.03 to 623.27.

With no new economic news reported, investors focused on the expiration of futures and options contracts on stocks and stock indexes, a quarterly event known as "triple witching."

Stocks benefited from strength in bonds. The yield on the 30-year Treasury bond, which moves in the opposite direction from the price, fell to 6.64 percent late today from 6.67 percent late yesterday.

"The outlook (for stocks) is still favorable," said Eric Miller, chief market strategist at Donaldson, Lufkin & Jenrette Securities in San Francisco.

"Interest rates have come down a little more. If there are any (investors) worried about the Fed raising rates July 1-2, they are very few in number," he said.