NEW YORK (CNNMoney.com) -- Stocks rallied Thursday, with the Dow Jones Industrial average climbing above 11,900 for the first time, after good news from McDonald's and Costco.

The Dow (up 77.16 to 11,929.29, Charts) jumped nearly 0.7 percent about 2-1/2 hours into the session.

The world's most widely watched stock market gauge hit a new record trading high over 11,930, passing the previous record set Tuesday, and pushing the Dow within 70 points of 12,000 - the next major milestone for the market.

The broader S&P 500 (up 8.51 to 1,358.46, Charts) index rose 0.6 percent while the tech-fueled Nasdaq composite (up 18.65 to 2,326.92, Charts) added 0.8 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, though the stock rally continued even as oil bounced back.

A slew of strong earnings reports added to the positive momentum.

"The market is making a new high and not pulling back," said Tony Dwyer, equity market strategist at FTN Midwest Research.

Traders and investors are being forced into the market out of fear that that they will miss out on the upside, Dwyer said. "Greed is coming in to play."

Dow component McDonald's (up $0.75 to $42.00, Charts) rose 2 percent, making it the Dow's top gainer, after the fast-food chain said third-quarter earnings would be better than analysts expected.

Of the 30 blue chips in the Dow, 24 rose and six fell.

Soft drink and snack company PepsiCo (down $0.81 to $63.05, Charts) reported higher earnings and raised its earnings guidance for the full year, but shares slumped 1.5 percent.

Shares of Costco (up $2.91 to $52.98, Charts) jumped about 4 percent after the wholesale retailer reported slightly improved results that beat lowered estimates.

Harley-Davidson (down $0.14 to $63.01, Charts) also posted better-than-expected results, although shares seesawed in midday trade.

But shares of Winnebago Industries (down $1.71 to $32.65, Charts) sank 6 percent after the motor-home manufacturer reported sharply lower profits

Market breadth was positive. On the New York Stock Exchange, losers beat winners by four to one on volume of 550 million shares. On the Nasdaq, decliners topped advancers by three to one on volume of 700 million shares.

Light, sweet crude for November delivery rose 21 cents to $57.80 a barrel on the New York Mercantile Exchange after the government's weekly inventory report.

On the economic front, 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 $68.0 billion level set in July, according to the Commerce Department.

Treasurys rose, lowering the yield on the 10-year note to 4.77 percent from the 4.78 percent level they rose to 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 in early trading.

COMEX gold for December delivery rose $2.20 to $578.70 an ounce.

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

Bulls to keep running, for now

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