STOCKS extended their winning streak into a third straight session yesterday, with the Nasdaq composite index closing at a record high on solid first quarter earnings reports.

The Dow Jones industrial average ended up 27.10 points at 5,620.02, after gaining 60 points on Monday and 46 points on Friday.

In the broader market, advancing issues led declines 1,309 to 1,020 on active volume of 451 million shares on the New York Stock Exchange.

The Nasdaq index ended up 14.48 points at a record 1,124.92, beating the old high of 1,118.21 reached on April 4th.

"The combination of decent earnings and a better bond market have given equities something to cheer about," said Mr Douglas Cliggott, senior investment strategist at Merrill Lynch.

In the bond market, the benchmark 30 year Treasury bond slipped 4/32, raising its yield to 6.80 per cent from 6.78 per cent on Monday.