American stocks resumed their fourth-quarter rally yesterday, pushing the Dow Jones Industrial Average to a record, after companies reported profits that beat analysts’ estimates and the number of claims for jobless benefits fell.

Advanced Micro Devices Inc., the world’s second-biggest maker of computer processors, had its steepest gain in two years after raising its earnings forecast. Bear Stearns Cos. climbed to an all-time high after the investment bank reported record net income. Costco Wholesale Corp., the largest American warehouse club, led retailers higher on results that beat forecasts.

The rise in profits shows that companies are withstanding a slowdown in manufacturing and housing. The drop in jobless claims, along with data this week showing a rebound in retail sales, signaled consumer spending will keep driving growth.

“Corporate earnings are continuing to be strong,” said Patrick Becker, who helps manage $2.3 billion as chief investment officer at Becker Capital Management in Portland, Ore.

The Dow average climbed 99.26, or 0.8%, to 12,416.76, surpassing its previous high of 12,342.56 set on November 17. The Standard & Poor’s 500 Index added 12.28, or 0.9%, to 1425.49, a sixyear high. The Nasdaq Composite Index jumped 21.44, or 0.9%, to 2453.85.

Energy stocks climbed along with oil prices. Crude futures rose 1.9% to $62.51 a barrel in New York after the Organization of Petroleum Exporting Countries, producer of about 40% of the world’s oil, agreed to reduce output.

Profits at S&P 500 companies have climbed more than 10% for 13 quarters in a row, according to Thomson Financial. The earnings gain has helped give the S &P 500 a 6.7% boost this quarter, which would be its best three-month performance since the period ended December 2004.

Advanced Micro rallied $2.54, or 13%, to $22.71 for the best performance in the S&P 500. The company expects shipments to increase about 20% in 2007, twice its forecasted rate for the market. Larger rival Intel Corp. gained 7 cents to $20.77.

Ciena Corp., a maker of computernetworking equipment, surged $2.87 to $27.83 after posting its first quarterly profit in five years.

Bear Stearns rose $4.07 to $159.96 after reporting a bigger-than-expected profit on increased trading in stocks and bonds and higher fees from advising on mergers.

The fourth-largest American securities firm by market value, Lehman, said earnings jumped 22% to $1 billion. Investment-banking fees were 5% higher in the quarter, lagging behind doubledigit increases at rivals Goldman Sachs Group Inc. and Bear Stearns. Lehman shares retreated 29 cents to $76.08.

Bear Stearns and Citigroup Inc. helped lift the S &P 500 Financials Index 0.8% to a record high.

Citigroup jumped 79 cents to $53.11. Chief Executive Officer Charles Prince told investors to expect a “leaner, thinner” company that will rein in spending growth.

Initial jobless claims fell to 304,000 last week from 324,000 the prior week, the Labor Department said. Retail sales jumped 1% last month, the first gain since July, the Commerce Department reported yesterday.

Manufacturing data also provided support to stocks. The Federal Reserve Bank of New York’s general economic index fell less than expected, slipping to 23.1. A number greater than zero means that most factories reported business is getting better. Economists surveyed by Bloomberg expected a reading of 17.7.

“The economy seems to be on track for a soft landing,” or a slowdown that averts both a recession and faster inflation, said Robert Doll, the chief investment officer of global equities at Black-Rock Inc., which oversees more than $1 trillion in New York. “Investors’ concerns are slowly but surely dissipating and that means markets go up.”

Costco advanced 97 cents to $54.11. Among other merchants, department-store operator J.C. Penney Co. rose $1.81 to $80.59. The largest American clothing chain, Gap Inc., added 71 cents to $20.28.

Overall profit growth at S&P 500 companies in the fourth quarter will be 9.7%, according to analysts surveyed by Thomson on December 8. While slower than the 19% surge last quarter, the pace would exceed the 7.6% annual average since 1947.

Honeywell International Inc. rallied 83 cents to $42.69. The world’s largest maker of airplane controls said earnings may beat some analysts’ estimates next year on higher sales of jet parts and building safety and security products.

Oil’s rise lifted energy shares and sent airline stocks lower. Exxon Mobil Corp., the world’s biggest oil company, gained $1.37 to $78.73. ConocoPhillips added $2.07 to $73.07.

The Amex Airline Index fell 0.9% on concern fuel costs will increase. AMR Corp., owner of the world’s largest carrier, dropped 58 cents to $32.07. UAL Corp., which owns United Airlines, slipped 69 cents to $44.55.

United Technologies Corp. had the steepest decline in the Dow industrials. The shares lost $2.15, or 3.4%, to $62.06.

About five stocks rose for every two that fell on the New York Stock Exchange. Some 1.54 billion shares changed hands on the Big Board, 2.2% less than the three-month average.