Dow at record high as Exxon gains; Oracle hurts Nasdaq

NEW YORK, Dec 20 (Reuters) The Dow Jones industrial average finished at a record high on Tuesday, spurred by a rise in oil prices that boosted shares of Exxon Mobil Corp But the Nasdaq fell as technology stocks dropped after disappointing financial results from industry bellwether Oracle Corp.

Investors also discounted a bigger-than-expected jump in November producer prices. The key inflation gauge registered its biggest gain in 32 years and initially sent stocks lower, but investors ultimately decided the PPI report was benign and would not lead the Federal Reserve to alter monetary policy.

''People are positive that growth is fine and inflation is going to be under control,'' said Neil Massa, senior trader at John Hancock Funds in Boston.

''Technology is pressured mainly by the negative headlines around earnings by some big technology companies. It's nothing to do with the overall environment.'' The Dow Jones industrial average rose 30.05 points, or 0.24 percent, to end at a record 12,471.32. The Standard & Poor's 500 Index advanced 3.07 points, or 0.22 percent, to finish at 1,425.55.

But the Nasdaq Composite Index slipped 6.02 points, or 0.25 percent, to close at 2,429.55.

The Dow hit an all-time high of 12,491.91 in intraday trading.

Tuesday marked the Dow's 21st record close since the start of October.

A LIFT FROM EXXON AND MORGAN STANLEY Shares of Exxon Mobil shot up 2 percent, or $1.48, to close at $76.99 on the New York Stock Exchange. The stock contributed the most to the gains in both the Dow and the S&P 500. The CBOE Oil Index rose 1.5 percent.

U.S. crude oil for January delivery rose 94 cents, or 1.5 percent, to settle at $63.15 a barrel on the New York Mercantile Exchange. The rise in oil prices was attributed to expectations that U.S. crude inventories fell in the past week due to shipping delays along the coast of the Gulf of Mexico. U.S. oil inventory data will be released on Wednesday.

Investment bank Morgan Stanley reported results that topped analysts' estimates and announced it will spin off its Discover credit card unit.

Morgan Stanley's stock was up 1.7 percent, or $1.33, at $81.70 on the NYSE. It ranked among the S&P 500's biggest advancers.

ORACLE'S LONG SHADOW Shares of Oracle were the heaviest drag on the Nasdaq 100 after the database software maker reported disappointing sales late on Monday. Oracle shares fell 4.5 percent, or 81 cents, to $17.10.

An unexpected quarterly loss from electronics retailer Circuit City sparked worries about retail store profits during the holiday shopping season. Its shares fell 17.5 percent, or $4.04, to $19.01 on the New York Stock Exchange. Shares of rival Best Buy Co. Inc.

fell 1.6 percent, or 79 cents, to $48.55 and the S&P Retail Index was off 0.6 percent.

Investors also were jittery after a steep drop in Thai stocks overnight after the government imposed capital controls to rein in its baht currency. The Thai government later withdrew its restrictions on foreign investment in its stock market.

Home builders' shares fell across the board after Hovnanian Enterprises Inc. posted a quarterly loss and gave a weak outlook, sending its stock down nearly 2 percent, or 69 cents, to $34.56.

The Dow Jones U.S. Home Construction Index fell 1.4 percent.

Trading was active on the New York Stock Exchange, where about 1.57 billion shares changed hands, slightly below last year's daily average of 1.61 billion.

On the Nasdaq, about 2.04 billion shares were traded, exceeding last year's daily average of 1.80 billion.

Advancing shares beat decliners on the NYSE by a ratio of about 6 to 5, while on the Nasdaq, more than eight stocks fell for every seven that rose.

REUTERS PKS RN0436