Dow flirts with new record

NEW YORK (CNNMoney.com) -- Stocks rose Thursday morning, with the Dow hitting a fresh record trading high as investors digested the second day of Federal Reserve Chairman Ben Bernanke's testimony on the economy.

The Dow Jones industrial average (up 15.86 to 12,757.72, Charts) gained a few points around an hour into the session. The broader S&P 500 (down 0.38 to 1,454.92, Charts) index was little changed and the tech-fueled Nasdaq (up 3.01 to 2,491.39, Charts) composite added a few points.

Stocks surged Wednesday after comments from the Fed chief to the Senate Banking Committee portrayed the economy as strong, but not too strong - and inflation starting to ease.

The good cheer sent the Dow industrials, as well as the Dow's transportation and utilities averages, to a fresh record close. It was the first time all three hit records on the same day sine 1998.

Bernanke's prepared testimony to a House committee Thursday morning was similarly upbeat. However, after such a big day, investors were more cautious.

Dow component Caterpillar (up $1.65 to $67.81, Charts) rallied more than two percent after the heavy equipment maker said it was buying back $7.5 billion of its own stock.

Qualcomm (up $1.33 to $40.99, Charts) rallied after the wireless chip maker was upgraded by brokerage Oppenheimer, Reuters reported.

But oil services firm Baker Hughes (down $5.86 to $66.08, Charts) slumped after reporting higher quarterly earnings that missed forecasts late Wednesday.

Market breadth was mixed. On the New York Stock Exchange, winners barely beat losers on volume of 300 million shares. On the Nasdaq, decliners topped advancers seven to six on volume of 460 million shares.

The February NY Empire State index, a closely watched regional manufacturing reading, rose to 24.4 in the month, rebounding from a weak previous month and easily topping forecasts. Midday brings the release of the Philly Fed index, another regional manufacturing report.

A separate report showed a surprise drop in industrial production in January and a bigger-than-expected decline in capacity utilization.

U.S. light crude oil for March delivery fell $1.09 to $56.91 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery fell $1.50 to $670.50 an ounce.

Treasury prices rallied, lowering the yield on the benchmark 10-year note to 4.69 percent from 4.73 percent late Wednesday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar fell versus the euro and yen.

Earnings slowdown: Blame energy

Bush unveils $2.9 trillion budget

More on the markets

More on investing