Dow up 89.9;
Nasdaq at record

NEW YORK -- Blue-chip stocks led the market higher today as investors welcomed the latest indication that inflation is under control. Technology shares were held to modest gains.

The Dow Jones industrial average rose 89.91 to close at 11,224.70.

Broader stock indicators posted more modest advances. The Nasdaq composite index rose 26.08 to close at a record 36,20.25, a new high despite trading lower for much of the session. The Standard & Poor's 500 rose 8.93 to 1,417.04.

Advancers barely beat decliners on the New York Stock Exchange, with 1,559 up, 1,506 down and 507 unchanged. NYSE volume totaled 981.35 million shares vs. 1.11 billion yesterday. The NYSE composite rose 3.44 to 639.49; the American Stock Exchange composite fell 1.44 to 827.87; and the Russell 2000 index rose 1.81 to 466.71.

Thirty-year Treasury bonds rose 22/32 point, or $6.88 per $1,000 face amount; yields fell 5 basis points to 6.16 percent, the lowest level in three weeks.

Banking and brokerage stocks led the Dow higher after the Labor Department reported a 0.2 percent gain during November in its Producer Price Index, which measures inflation pressures before they reach the consumer. That followed a 0.1 percent decline in October and was on target with many analysts' expectations.

"Faster productivity gains are better than expected. In essence, we've got a strong U.S. economy and virtually no inflation. There's a sense that consumer confidence remains robust," said Alan Ackerman, chief investment strategist at Fahnestock & Co. in New York.