Another Dow Record; Bond Yields Drop

Market Overview * Stocks pulled ahead to new highs on continued strong share volume, despite some disappointing corporate earnings reports.

* Bond yields eased as some traders speculated that the economy’s growth rate is losing steam. Gold prices tumbled on fears of a sudden supply glut.

Stocks

The market’s trend of recent days--slow advances on heavy turnover--remained intact Thursday: The Dow industrials inched up 7.59 points to a record 3,891.96, on Big Board volume of 310 million shares.

Winners edged losers on both the Big Board and Nasdaq, and the Nasdaq composite index of mostly smaller stocks made a new high by a sliver: It gained 3.75 points to 793.03, topping the previous record of 793.02 set Tuesday.

Fourth-quarter earnings reports from railroads CSX and Union Pacific failed to impress Wall Street and the stocks were pummeled. CSX lost 2 3/8 to 86 1/2 and Union Pacific slumped 2 1/2 to 63 7/8.

But the market got a lift from better than expected reports from some high-tech firms.

Also, like a faucet that won’t shut off, money continues to flow into industrial stocks that should benefit from a stronger economy.

Among Thursday’s highlights:

* The Nasdaq market was pulled up as Microsoft shares jumped 3 to 86 1/4 following its report that quarterly earnings rose 22%. Personal computer maker AST Research soared 4 3/8 to 29 1/8 after reporting quarterly earnings of 55 cents a share. Wall Street had expected 43 cents.

* Also gaining on earnings reports were Tandem Computer, up 1 5/8 to 13 3/4; PPG Industries, up 7/8 to 77 1/2; Kimberly-Clark, up 3 5/8 to 56 1/8, and Bearings, up 1 3/8 to 29 5/8.

* On the downside, software firm Computer Associates tumbled 3 1/2 to 41 despite reporting fourth-quarter earnings up 50%. Some investors had expected more.

Chemical giant Monsanto gave up 1 7/8 to 78 1/8 after reporting quarterly earnings of 49 cents a share, versus a loss a year ago.

* Another loser was computer chip maker Altera, off 5 5/8 to 30 on its quarterly report.

* Circus Circus slumped 2 1/4 to 36 7/8 after it said the general manager of its new Luxor hotel-casino in Las Vegas had resigned to join an Australian company.

Also in the gaming area, slot machine maker International Game Technology tumbled 2 1/8 to 29 7/8 ahead of its earnings report, which came after the market closed. The 43% profit gain beat expectations.

Overseas, Tokyo’s Nikkei index rose again, adding 144.52 points to 19,183.92, its highest close since Nov. 2.

Frankfurt and London markets retreated, but Mexico City’s Bolsa index gained 54.57 points to finish at 2,656.07.

Other Markets

Bond yields rose early in the day, following the release of a Commerce Department report that showed a larger than expected rise in housing starts during December.

But yields fell back later after the Labor Department said the number of Americans filing initial jobless claims surged 23,000 to the highest level in six months during the week ended Jan. 15. That suggested the economy’s growth might not be as robust as expected this quarter.

The yield on the Treasury’s main 30-year bond slipped to 6.26% from 6.29% on Wednesday.

In the municipal market, the Los Angeles Department of Water and Power said it will delay a $277-million bond sale one week, to Feb. 1, to let investors assess earthquake damage.

Elsewhere, gold fell $4.80 to $387.50 an ounce on New York’s Comex on rumors of a large hoard of gold stashed in a Swiss bank by the late Philippine President Ferdinand Marcos--raising fears of potential excess supply in the market.

Silver fell 7.2 cents to $5.25.

Market Roundup, D6