The Dow Jones industrial average rose 41.74 to 5,778.00, breaking through its latest high of 5,748.82 set on Monday.

Advancing issues outnumbered decliners by about 6 to 5 on the New York Stock Exchange, with 1,310 up, 1,034 down and 815 unchanged.

Big Board volume totaled 420.56 million shares vs. 409.6 million in the previous session.

Barry Berman, the head stock trader at Robert W. Baird & Co. in Milwaukee, said bonds paved the opening for stocks to run higher. "There just wasn't a lot for sale this morning, and when bonds came up, stocks just followed."

The 30-year Treasury bond was up 15-32 point at 6.81 percent.

Broad indexes gained as well, with the NYSE composite 2.64 higher at 363.69. The S&P 500 list rose 5.65 to 678.41.

The Nasdaq composite index rose 2.15 to 1,246.57.

At the American Stock Exchange, the market value index rose 2.76 to 614.99.

On Tuesday, the Dow lost about 12 points, ending a nine-session winning streak that added more than 325 points to the blue-chip measure and lifted it to its first new <P>record in seven weeks.

Stocks paused Tuesday as strong consumer spending rekindled inflation fears in the bond market, sending interest rates higher.

But stocks were pushed higher Wednesday by investors buying to cover short positions.

"Everybody's instinctively nervous that we've had a big run up," said Hugh Johnson, chief investment officer at First Albany Corp. "They're worried they'll be left out if we have another big move up."