Dow trades above record on optimism about profits

NEW YORK, Sep 28 (Reuters) The blue-chip Dow briefly rose above its record closing high on Thursday, driven by optimism about profit growth and falling crude oil prices, but the milestone also attracted sellers seeking to lock in profits.

The 110-year-old Dow Jones industrial average rose to11,724.86, pulling past its previous record closing high of 11,722.98 hit on Jan. 14, 2000.

''Once you hear a headline like, 'The market is at a all-time high,' it's going to draw out sellers,'' said Sal Arnuk, co-manager of trading at Themis Trading in Chatham, New Jersey. ''If we close above the high, it's going to be on big volume.'' The top positive influence on the Dow on Thursday was General Motors Corp., whose shares rose 3.6 percent to .43 on the New York Stock Exchange after Chief Executive Rick Wagoner said he was open to an alliance with Renault-Nissan.

The Dow Jones industrial average was up 5.68 points, or 0.05 percent, at 11,694.92. The Standard&Poor's 500 Index was down 0.33 points, or 0.02 percent, at 1,336.26. The Nasdaq Composite Index was up 0.26 points, or 0.01 percent, at 2,263.65.

The S&P 500 is trading at 5 1/2-year highs.

Data before the opening bell that showed weaker-than-expected economic expansion also kept a lid on gains.

The government said second-quarter gross domestic product was revised down to a 2.6 percent annual rate of growth, below economists' expectations for 2.9 percent. The data also showed corporate profits grew at a slower pace.

Shares of computer maker Hewlett-Packard Co. slipped 0.1 percent to .34 on the NYSE after the company said its general counsel had resigned before a congressional hearing on the company's methods of investigating boardroom leaks. For details, see ID:nN28193431.

Other top Dow gainers included shares of plane maker Boeing Co. and heavy equipment maker Caterpillar Inc.. The Dow also set an intraday record peak of 11,750.28 on Jan. 14, 2000.

REUTERS PKS RK2042