Dow Jumps 47 Points

The Dow Jones index set its 19th record close of the year Thursday on a burst of buying after blue-chip stocks overcame a bigger-than-expected rise in the Consumer Price Index last month. The Dow closed up 47.39 points at 7,333.55, eclipsing Monday's record finish of 7,292.75. In the broader market, advancing issues led declines by a small margin on moderate volume of 461 million shares on the New York Stock Exchange. Blue-chip stocks had been stuck in a narrow trading band for most of the session as mixed inflation signals prompted some investors to stay on the sidelines. The Nasdaq index gained 18.02 points to close at 1353.62.

Inflation Data Tame

In the latest sign that inflation remains in check, the Labor Department reported that retail prices barely rose in April. The department said the Consumer Price Index rose 0.1 percent last month, matching an identical rise in March. A separate report showed new claims for jobless benefits fell a larger-than-expected 31,000 to 319,000 in the week ended May 10. Separately, the Federal Reserve reported that production at mines, factories and utilities was flat in April for the first time since last summer as strikes and related plant shutdowns slowed auto production.

Swiss Bank to Buy Dillon Read

Swiss Bank Corp. says it agreed to buy Wall Street investment bank Dillon Read for about $600 million, the latest merger in the rapidly consolidating global securities business. The bank says it plans to merge Dillon Read with SBC Warburg, the investment bank it acquired in 1995. SBC is paying about three times book value for Dillon Read, outstripping the multiple paid in deals such as Bankers Trust New York's $1.7 billion acquisition of Alex. Brown, which was announced April 7. Morgan Stanley and Dean Witter Discover announced a $10.7 billion merger in February.

Marathon, Ashland in Venture

USX says its USX-Marathon Group subsidiary has agreed to form a joint venture with Ashland combining the major elements of their refining, marketing and transportation operations. Financial terms were not disclosed. The venture, to be based in Findlay, Ohio, will not include the companies' exploration, production and chemical businesses. Other exclusions include Ashland's Valvoline division, along with equity investments in certain pipelines for both companies. Under terms of a letter of intent, USX-Marathon will own a 62 percent stake in the venture, which will include Ashland's refinery-produced petrochemicals. Ashland, based in Russell, Ky., will own 38 percent.

Kmart, Gap, Saks Earnings Up

Kmart says it posted a profit in the first quarter for the first time since 1994. Kmart had a first-quarter profit of $14 million, or 3 cents a share, vs. a loss of $99 million a year earlier. The results exceeded analysts expectations. Kmart has trimmed operating costs at its discount stores, scaled back its international operations and reduced the U.S. store base to 2,122 from 2,159. Gap reported earnings rose 3 percent in the first quarter to $84.3 million, or 31 cents a share, from $81.6 million, or 28 cents a share, a year earlier. Saks reported net income of $9.3 million, or 14 cents a share, including a charge of $3.4 million, or 6 cents a share. This compared with a loss of $3 million.

Amazon.com Stock Soars after IPO

Shares of money-losing Amazon.com surged on their first day of trading as investors bet the online retailer has an early lead in the business of selling books over the Internet. Amazon.com stock rose as high as $30 in early trading on Nasdaq, above the price of $18 set Wednesday in its $54 million initial public offering. The stock closed 5 1/2 higher at 23 1/2. Though it remains unprofitable, Amazon.com has been one of the more successful ventures to set up shop on the Internet. The mail-order operation publishes a catalog of several million book titles on the Internet and online services.

Liggett Adds Addiction Warning

Brooke Group is breaking from the rest of the tobacco industry once again. The company says its Liggett Group subsidiary has added a prominent warning label to L&M cigarettes stating the addictive nature of smoking. Liggett says it began distributing L&M cigarettes with the new label today. It says the new warning label also will be placed on its other premium brands -- Chesterfield, Lark and Eve -- and on other cigarettes made and sold by Liggett within 60 days. Liggett is the only U.S. cigarette maker to acknowledge that cigarette smoking is addictive.

Coffee Prices Hit 20-year High

Coffee prices soared to 20-year highs in a dizzy rally on frantic buying from speculators and commercial coffee firms worried about small stockpiles and shrinking crop prospects. In New York, coffee for May delivery closed at 277.05 cents a pound, up 15.55 cents, after trading as high as 279 cents -- the highest price for a coffee futures contract on the exchange since 1977. Elsewhere, gold prices edged higher. Gold for June delivery at the COMEX in New York closed 20 cents an ounce higher at $348.40 after falling more than $2 on Wednesday when it appeared Germany might sell gold.

Dollar Falls Against Yen

The dollar plunged against the Japanese yen to its weakest level in more than four months on expectations that Japan will raise interest rates. In Europe, the dollar plummeted to 114.7 yen, its lowest level since Dec. 27. The dollar, however, seesawed on either side of 116 yen during New York trading. Some traders felt remarks by U.S. Treasury Secretary Robert Rubin late in the day provided support to the currency. Rubin repeated his support for a strong dollar, saying it boosts market confidence, cuts interest rates and keeps inflation low. In late New York trading, the dollar settled at 115.97 yen, down from 117.23 yen late Wednesday.

ABC News Goes Online

ABC News and Starwave have joined the Internet news fray with a 24-hour news service launched Thursday. The service, ABCNEWS.Com will be supported by ad revenue and available free to online computer users. It will be distributed by its partners America Online and Netscape Communications. Its main rivals are MSNBC and CNN. MSNBC, a joint venture between Microsoft and NBC, was launched last July. CBS also plans an entry in the Internet arena. A spokesman said the network will unveil its plans at its affiliate meeting later this month.

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