Dow hits record again

NEW YORK (CNNMoney.com) -- The Dow industrials ended at an all-time high Thursday, closing at a record level for the second day in a row, while the broader market struggled amid worries about global growth.

The Dow Jones industrial average (up 4.79 to 12,808.63, Charts) gained a few points and ended at an all-time high for the second session. The blue-chip average neared, but did not take out the trading high of 12,838.46 hit on Wednesday.

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The broader S&P 500 (down 1.77 to 1,470.73, Charts) index lost less than 2 points, backing off after ending the previous session at a six-and-a-half-year high. The Nasdaq (Charts) composite lost 0.2 percent.

Treasury prices fell, lifting the corresponding yields and the dollar was mixed versus other major currencies. Oil and gold prices slumped.

After the close, Google (Charts, Fortune 500) reported higher quarterly sales and earnings that beat estimates, boosting shares by 2 percent in extended-hours trading.

American Express (Charts, Fortune 500), a Dow component, also reported higher quarterly sales and earnings after the close that topped estimates. The stock was little changed in extended-hours trading.

But Advanced Micro Devices (Charts, Fortune 500) reported a bigger-than-expected quarterly loss after the close, due to lower prices and unit shipments. Shares fell more than 2 percent in extended-hours trading.

Earnings reports are due Friday from four Dow components: Caterpillar (Charts, Fortune 500), Honeywell (Charts, Fortune 500), McDonald's (Charts, Fortune 500) and Pfizer (Charts, Fortune 500).

The major gauges had been on both sides of unchanged throughout the session as investors weighed the latest earnings reports, falling oil prices and the implications of a big selloff in Asian and European markets.

Stocks have managed a "pretty nice recovery" over the last month or so, following the late February decline and are now kind of drifting, awaiting the next catalyst, said Robert Philips, chief investment officer at Walnut Asset Management.

Helping at the moment is the upbeat start to the earnings reporting period, Philips said, in particular, in the big pharma and financial sectors.

After 14 quarters of double-digit percentage growth, earnings in the first quarter are on track to slow to about a 4 percent year-over-year growth rate, according to the latest Thomson Financial estimates.

As is typically the case, overall earnings growth will probably beat the estimates by around 3 percent, meaning first-quarter S&P 500 growth will probably end up at around 7 to 8 percent.

While growth at that pace would mark a slowdown from the previous 3-1/2 years, it still represents a decent rate of growth, Philips said.

Investors also focused on the latest batch of earnings reports. eBay (down $1.26 to $33.19, Charts, Fortune 500) reported higher quarterly results that topped forecasts after the close Wednesday. The online auctioneer also said 2007 results would be at the top of analysts' forecasts. Yet shares slipped as investors took a 'sell the news' approach.

A number of big pharmaceutical companies reported upbeat earnings too.

On Thursday, Merck (up $0.46 to $50.15, Charts, Fortune 500) reported higher quarterly sales and earnings that topped estimates and reaffirmed its 2007 earnings forecast, sending shares higher.

Also Thursday, Schering-Plough (up $2.45 to $31.00, Charts, Fortune 500) reported a jump in quarterly earnings that topped estimates, thanks to strength in its prescription drugs. Shares jumped 8.6 percent.

Nokia (up $0.78 to $24.65, Charts) shares gained after the cell phone maker reported improved sales in emerging markets and improved profit margins.

Intel (up $0.46 to $21.81, Charts, Fortune 500) continued to gain on positive analyst commentary following its quarterly earnings report, released late Tuesday.

On Thursday, Dow component Altria (down $0.68 to $69.40, Charts, Fortune 500) reported higher quarterly sales and earnings that were short of forecasts, sending the stock lower.

Bank of America (down $0.91 to $50.91, Charts, Fortune 500) reported higher quarterly earnings Thursday that topped estimates on higher revenue that missed forecasts. Shares slipped.

Market breadth was negative. On the New York Stock Exchange, losers beat winners by 5 to 3 on volume of nearly 1.64 billion shares. On the Nasdaq, decliners topped advancers by more than 3 to 2 as almost 2.18 billion shares changed hands.

Stocks suffered the biggest losses of the session in the early morning, in response to the global market pummeling.

China's economy grew 11.1 percent year-over-year in the first quarter, while a key measure of inflation jumped more than expected, sparking talk that authorities would need to raise interest rates to cool down growth. All of which pressured stocks in China and elsewhere in Asia, with European markets following suit.

U.S. stocks initially stumbled too, echoing the big selloff of Feb. 27, when plunging Chinese markets sent stocks around the globe lower on worries about growth. On that day, the Dow slumped 416 points, its biggest one-day point loss in 5-1/2 years.

However, the Thursday morning selloff was "fairly muted" by comparison, said Matt King, portfolio manager at Bell Investment Advisors.

"I think that it shows that investors have come to realize since Feb. 27th that although global markets are connected in general, what happens to the Chinese market doesn't have to have a big influence on the U.S. market," King added.

The session also brought a pair of sluggish readings on the economy.

The March index of leading economic indicators rose 0.1 percent as expected, after falling a revised 0.6 percent in the previous month.

The April Philadelphia Fed index, released at midday, was unchanged at 0.2 in the month, missing forecasts for a rise to 3.

U.S. light crude oil for May delivery fell $1.63 to settle at $61.50 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery fell $5 to settle at $688.30 an ounce.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.67 percent from 4.65 percent late Wednesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and fell versus the yen. The greenback also recovered a bit after hitting a 26-year low against the pound on Wednesday.