Another run at a Dow record

Blue-chip average in record territory on mild inflation, merger news; techs hurt by Dell, AMAT; oil turns lower.

NEW YORK-- The Dow industrials flirted with a new high near midday Thursday due to a mild inflation reading and a pair of big corporate deals, but tech stocks struggled after discouraging news from Dell and Applied Materials.

The Dow Jones industrial average (up 38.02 to 12,289.73, Charts) rose 0.3 percent around 2-1/2 hours into the session, briefly touching a new record trading high, before scaling back a bit. The blue-chip barometer ended the previous session at a record high for the 16th time since Oct. 3.

The broader S&P 500 (up 3.46 to 1,400.03, Charts) index added 0.3 percent after ending the previous session at its highest level since Nov. 9, 2000.

The tech-fueled Nasdaq composite (down 1.42 to 2,441.33, Charts) was little changed after ending the previous session at its highest level since Feb. 15, 2001.

"The CPI report was good news for investors, in that it shows inflation pressures continue to abate," said Alan Gayle, senior investment strategist at Trusco Capital Management.

"But the market has had a strong run and has already prices in a lot of good news," he said. "So this CPI report doesn't have the positive impact it used to."

Since bottoming in July, the major gauges have been on an upswing, as investors have reacted well to a bevy of supportive factors. They include: lower oil prices, improved quarterly earnings, a Federal Reserve that has halted its interest rate campaign, and bets that inflation is moderating and the economy has avoided a so-called "hard landing."