Dow hits new record once again

NEW YORK (CNNMoney.com) -- Stocks rose early Wednesday afternoon, with the Dow industrials hitting a fresh intraday high as investors welcomed upbeat earnings, a buyout bid for Cablevision, lower oil prices and a report showing strength in the factory sector.

The Dow Jones industrial average (up 78.74 to 13,214.88, Charts) added 0.6 percent 2-1/2 hours into the session and briefly touched a record intraday high of 13,227.89, before retreating a bit. The Dow closed at an all-time high Tuesday for the fourth time in the last five sessions. The blue-chip indicator has risen for 20 of the last 23 sessions.

The tech-heavy Nasdaq composite (up 22.25 to 2,553.78, Charts) gained 0.9 percent and the broader S&P 500 (up 9.26 to 1,495.56, Charts) index rose 0.6 percent.

Stocks rose Tuesday afternoon at the end of a choppy session as investors welcomed News Corp's $5 billion bid for Dow Jones. The momentum continued Wednesday, with investors welcoming another deal report in media, as well as the latest in first-quarter earnings.

Lower oil prices on the day were helping, said Charles Smith, chief investment officer at Fort Pitt Capital Group. But beyond that, the rally was representative of the momentum that has propelled stocks over the last month.

"There's no question that the earnings have been much better than what analysts were expecting," Smith said. "And that's been driving the advance."

Smith noted that at the end of last quarter, analysts were expecting earnings growth of just over 3 percent, whereas now, growth is on track to rise 7 or 8 percent.

With 72 percent of the S&P 500 having reported results, earnings are currently on track to have grown 6.9 percent from a year ago, according to the latest Thomson Financial estimates. That's a blended number, including reported and forecast earnings, with the final number likely to show growth of 7 or 8 percent.

In addition to earnings, stocks have gotten a boost from the wave of corporate mergers and other deals news.

In the latest, Cablevision (up $2.68 to $35.35, Charts, Fortune 500) has agreed to be taken private for $10.6 billion by the family that already owns a controlling stake in the No. 5 cable operator. Cablevision shares jumped 8 percent.

Dow Jones (down $0.20 to $56.00, Charts) shares inched lower after the company that controls the media behemoth indicated it would not approve News Corp (up $0.43 to $23.42, Charts, Fortune 500)'s proposed takeover, opening the door to other bidders.

In earnings news, CNNMoney.com parent Time Warner (up $0.60 to $21.19, Charts, Fortune 500) reported earnings that beat estimates on sales that met estimates. (Full story).

MasterCard (up $12.83 to $127.68, Charts) reported higher quarterly sales and earnings that topped forecasts, sending shares 11 percent higher.

Transocean (up $2.11 to $88.38, Charts), which operates petroleum drilling rigs, reported higher quarterly sales and earnings that topped estimates. Shares gained 2.5 percent.

Nortel Networks (up $1.73 to $24.80, Charts) jumped 7 percent after the telecom gear maker said late Tuesday that it expects first-quarter revenue in a range that could top analysts' forecasts.

Market breadth was positive. On the New York Stock Exchange, winners beat losers 3 to 1 on volume of 740 million shares. On the Nasdaq, advancers topped decliners by more than 2 to 1 on volume of 930 million shares.

Investors also eyed a weaker-than-expected reading on private sector employment, suggesting that Friday's April jobs report could show weaker payroll growth than currently forecast.

The ADP National Employment report showed the private sector added 64,000 jobs in April, short of forecasts.

Another report showed that March factory orders rose a larger-than-expected 3.1 percent, after growing 1.4 percent in the previous month, an encouraging sign for the economy.

Treasury prices slipped, lifting the yield on the 10-year note to about 4.64 percent from around 4.63 percent late Tuesday. Treasury prices and yields move in opposite directions.

In bond market news, the government said Wednesday that it is discontinuing the sales of three-year treasury notes, due to what it said was an improving budget deficit.

In currency trading, the dollar gained against the euro and was little changed versus the yen.

U.S. light crude oil for June delivery fell 41.05 to $63.35 a barrel on the New York Mercantile Exchange, following the weekly oil inventories report.

COMEX gold for June delivery fell $6.70 to $670.60 an ounce.