APRIL 4, 2011, 6:31 P.M. ET.

Dow Rises to Highest Close in 34 Months

By BRENDAN CONWAY

Blue-chip stocks eked out small gains in the lightest trading volume all year, but other major indexes finished flat as technology shares sagged.

The Dow Jones Industrial Average added 23.31 points, or 0.2%, to finish at 12400.03, its highest close since June 5, 2008 and the index's 10th advance in 13 sessions.

Johnson & Johnson led the blue chips as it gained 66 cents, or 1.1%, to $60.15. Wal-Mart Stores added 52 cents, or 1%, to 52.65, on a report that it is considering selling groceries online. The gains were kept in check by Hewlett-Packard, which dropped 64 cents, or 1.6%, to 40.34, and Intel, which lost 23 cents, or 1.2%, to 19.49.

Technology stocks were broadly lower after Gartner analysts made cautious comments on semiconductor supply-chain problems in the wake of Japan's earthquake.

Blue-chip stocks eked out small gains in light trading volume, but other major indexes finished flat as the technology sector sagged. Joe Bel Bruno has details.
.The Nasdaq Composite shed 0.41 point, or 0.01%, to 2789.19, its first drop in five sessions. The Standard & Poor's 500-stock index edged up 0.46 point, or 0.03%, to 1332.87, led by the materials and health-care sectors.

"The focus continues to be on inflation," said Michael Sansoterra, portfolio manager for the RidgeWorth Large Cap Growth Fund. "Investors are weighing how much [inflation] is OK versus how much is too much. Oil is really strong and it continues to drive commodity prices," he said.

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.New York Stock Exchange composite volume was 3.26 billion shares, the lowest level since New Year's Eve. Several Federal Reserve officials are scheduled to speak this week. Last week brought hawkish comments from some Fed officials, which prompted investors to consider when a policy change might occur.

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.Southwest Airlines dropped 21 cents, or 1.7%, to 12.46, as the Texas airline continued to inspect its fleet of Boeing 737-300 jetliners for fuselage cracks after a hole opened in one aircraft, forcing an emergency landing. Boeing slipped six cents, or 0.1%, to 73.95.

Pfizer added 16 cents, or 0.8%, to 20.54, after the company sold its Capsugel unit to private-equity firm Kohlberg Kravis Roberts.

General Dynamics dropped 4.05, or 5.2%, to 73.37, after a Gulfstream G650, made by its Gulfstream Aerospace unit, crashed during a flight test Saturday, killing the four people on board.

Vivus climbed 42 cents, or 6.7%, to 6.73, after it said patients treated with the investigational drug Qnexa showed reductions in blood pressure.

BP's U.S.-listed shares advanced 23 cents, or 0.5%, to 45.89, after the U.K. oil company said it agreed to sell its ARCO Aluminum unit to a group of Japanese investors for $680 million in cash. In addition, the company is pursuing permits to resume drilling in the Gulf of Mexico.

McCormick & Schmick's Seafood Restaurants surged 2.10, or 29%, to 9.22, after Landry's Restaurants founder and Chief Executive Tilman J. Fertitta offered to buy the dining company for $137.2 million.

Molycorp gained 7.16, or 12%, to 66.41, after the rare-earth mining company said it acquired a 90% stake in rare-earth processing company Silmet, an $89 million deal that gives it a foothold in Europe and doubles its production capacity.

Epicor Software gained 1.32, or 12%, to 12.56, as the company, along with Activant Solutions, agreed to buyout offers from funds affiliated with private-equity firm Apax Partners in a combined deal valued at about $2 billion.

Ambassadors International plunged 2.15, or 77%, to 65 cents, as the company said it is looking to sell its Windstar Cruises, a luxury line of yachts that sail to destinations such as the Greek Isles, in a fast-track bankruptcy sale to its lender or a higher bidder.

Write to Brendan Conway at brendan.conway@dowjones.com

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