Dow Ends at New High; Dollar Slips

NEW YORK — Blue-chip stocks rallied to a record closing high in one of Wall Street’s busiest days Friday despite a proposed landmark settlement with state negotiators that depressed tobacco shares.

Bonds rose. The dollar fell as the British pound gained amid forecasts of higher British interest rates.

The Dow Jones industrial average finished up 19.45 points at 7,796.51, off its session high of 7,834. The close eclipsed the previous record of 7,782.04 set last June 13. For the week, the index rose 14.47 points.

But the rally was not broad-based, with losing issues outpacing gainers by a ratio of 1,479 to 1,101. About 652.7 million shares changed hands on the New York Stock Exchange in its third busiest day ever.

Tobacco stocks, which rallied Thursday in anticipation of a liability settlement deal, turned lower after an agreement was reached shortly before the session’s end.

The agreement would require cigarette companies to pay $368.5 billion over 25 years to compensate states and smokers and to fund programs to help people quit smoking.