NEW YORK (CNNMoney.com) -- Stocks rallied Thursday afternoon, with the Dow Jones industrial average climbing well past the 11,900 barrier for the first time in its 110-year history, after several key earnings figures and an economic report from the Federal Reserve that investors cheered.

The Dow (up 95.57 to 11,947.70, Charts) jumped more than 0.8 percent, blowing past the previous record closing high of 11,867.17 set Tuesday and notching its fifth record in little more than a week.

The world's most widely watched stock market gauge also marked a new record trading high of 11,959.63, surpassing the previous record set Tuesday, and coming about 40 points shy of 12,000 - the next major milestone for the market.

The broader S&P 500 (up 12.88 to 1,362.83, Charts) index rose 1 percent to a 5-1/2 year high while the tech-fueled Nasdaq composite (up 37.91 to 2,346.18, Charts) added 1.6 percent.

Stocks fell Wednesday on weaker than expected earnings reports and news that a small plane had hit a New York high rise apartment building. (Full story.)

But all three major gauges turned higher Thursday after oil prices fell to their lowest level this year, and the stock rally continued even as oil bounced back.

A slew of solid corporate earnings reports and an indication of economic strength by the Fed's Beige Book added to the positive momentum.

Investors reacted positively to the Fed's report that the economy continued to grow despite cooling in the housing market, according to Art Hogan, chief market strategist at Jefferies & Co.

"On the whole, the general theme supports a soft landing [for the economy], and that's good news for the market," Hogan said.

After the closing bell, shares of Home Depot (down $0.02 to $37.90, Charts) edged lower on Inet after the Dow component announced that it is streamlining management to better focus on its stores.

La-Z-Boy (down $0.05 to $15.00, Charts) tumbled 10 percent in extended trade after the furniture maker cut its forecast for quarterly profit, citing lower-than-expected sales.

And Aetna (up $0.27 to $40.22, Charts) said it was laying off about 650 workers, or 2 percent of its total workforce, sending shares of the health insurer lower in after-hours trade.

During the regular trading session, Dow component McDonald's (up $0.98 to $42.23, Charts) rose more than 2 percent, making it one of the Dow's top gainers, after the fast-food chain said third-quarter earnings would be better than analysts expected.

Of the 30 blue chips in the Dow, 21 rose and nine fell.

Fellow Dow component GE (up $0.05 to $36.22, Charts) is scheduled to report Friday morning.

In other corporate news, soft drink and snack company PepsiCo (down $1.01 to $62.85, Charts) reported higher earnings and raised its earnings guidance for the full year, but shares slumped 1.5 percent.

Shares of Costco (up $3.83 to $53.90, Charts) soared nearly 8 percent after the wholesale retailer reported slightly improved results that beat lowered estimates.

Shares of Wendy's International (up $1.39 to $35.11, Charts) jumped 4 percent after the fast-food chain said it will return $1 billion to shareholders through share buybacks and dividends.

News that Palm (up $0.91 to $16.22, Charts) introduced an updated version of its Treo phone sent shares of the smart phone maker up 6 percent. Rival Research In Motion (down $0.62 to $111.03, Charts) edged lower.

Harley-Davidson (up $1.73 to $64.88, Charts) posted better-than-expected results, sending shares up nearly 3 percent.

But shares of Winnebago Industries (down $1.08 to $33.28, Charts) sank 3 percent after the motor-home manufacturer reported sharply lower profits

Market breadth was positive. On the New York Stock Exchange, winners beat losers by nearly four to one on volume of 1.6 billion shares. On the Nasdaq, advancers topped decliners by three to one on volume of 2 billion shares.

Light, sweet crude for November delivery rose 27 cents to $57.86 a barrel on the New York Mercantile Exchange after the government's weekly inventory report.

On the economic front, the economy kept growing since early September but certain sectors like real estate are showing weakness, the Federal Reserve said in its Beige Book summary of economic conditions.

And the trade gap rose to a record level in August. U.S. imports outstripped exports by $69.9 billion in August, up from the previous record $68 billion level set in July, according to the Commerce Department.

Investors will also be paying close attention to September's retail sales report slated for Friday.

Treasurys were little changed, with the yield holding at around 4.78 percent, the level they reached late Wednesday following the release of the minutes of the latest Federal Reserve meeting. The minutes showed central bank policymakers still concerned about the risk of inflation.

The dollar was lower against the euro and the yen.

COMEX gold for December delivery rose $3.80 to $580.30 an ounce.

Stocks ended mixed in Asia and posted modest gains in Europe.

Bulls to keep running, for now

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