Stocks bounced back yesterday from Thursday's sell-off, pushing some measures back into record territory as a robust economic report eased concern over this week's profit warnings from Intel and Motorola.

The Dow Jones industrial average rose 125.06 points - or 1.4 per cent - to 8,569.39, wiping out Thursday's 95-point slide and finishing about 15 points shy of Tuesday's record close of 8,584.83.

Broader stock indexes also repaired Thursday's damage. The Standard and Poor's 500 and the New York Stock Exchange composite moved back into record territory and the Nasdaq composite recovered much of Thursday's 2.7 per cent plunge.