US stocks rallied on Thursday, boosting the Dow to a record, as healthy sales from key retailers reassured investors about the economy, while take-over speculation drove Alcoa Inc's shares to a lifetime high. At one point, the Dow rose more than 200 points, a point advance that has eluded the blue chip average for the past year.
Alcoa's stock rose 6.2 percent to $45.07 after climbing to a high of $46.15. The Dow Jones industrial average was up 183.79 points, or 1.35 percent, at 13,761.66. The Standard & Poor's 500 Index was up 16.43 points, or 1.08 percent, at 1,535.19. The Nasdaq Composite Index was up 30.33 points, or 1.14 percent, at 2,682.12.
The Dow earlier rose to an intraday record high of 13,783.77, topping a previous record set June 1. The Nasdaq rose to its highest level in more than six years. Major retailers, including Wal-Mart Stores Inc posted surprisingly strong monthly sales figures, boosting optimism about the outlook for profits. Wal-Mart shares rose 2.2 percent to $48.75 on the New York Stock Exchange.