The Dow Jones Industrial Average came close to the 12,000 mark as it hit its highest level ever and ended with yet another record close. Steam was supplied by International Business Machines, which has been stealthily stringing together a series of advances; Alcoa, pitching in after last week’s profit problem; Merck, on anticipation of a major drug approval; and Microsoft, whose pending product launch continues to stir investor interest.

The Dow Jones Industrial Average rose 20.09, or 0.17%, to 11,980.60. During the session, it came ever so close to 12,000, by hitting 11,997.25. The Dow keeps inching toward the 12,000 mark, now having chalked up record closing highs in seven of the last 10 sessions. The Nasdaq Composite Index gained 6.55, or 0.28%, to 2363.84, only about 7 points from a five-and-a-half-year high. The Standard & Poor’s 500 Index advanced 3.43, or 0.25%, to 1369.05, reaching a five-and-a-half-year-high.

International Business Machines rose 63 cents to 86.71, now up six of the last seven sessions for a gain of 4.6%. IBM is due to report earnings after the bell on Tuesday.

Alcoa, which kicked off the thirdquarter earnings season on a disappointing note last week, rose 68 cents, or 2.6%, to 27.32, making it the industrial average’s best percentage gainer. Prudential Equity Group raised shares to overweight from neutral weight, seeing opportunity in better than expected aluminum prices.

Merck gained 56 cents, or 1.3%, to 43.76, a two-year high. The drug maker is expected to soon receive American regulatory approval for its breakthrough diabetes drug Januvia, the Financial Times reported.

Microsoft (Nasdaq) rose 8 cents to 28.45, a four-and-a-half-year high. The stock has gained 4% in the last two weeks as enthusiasm builds for the launch of its Vista operating system for Windows software. The 4% rise just since the month began accounts for a large chunk of the 8.8% that the shares have risen this year.

Volume on the New York Stock Exchange was 1.44 billion shares. Up volume beat down by 983 million shares to 450 million, and stocks that rose in value exceeded those that fell, 2,312 to 1,021.

The final Dow Jones Industrial Average close was 11,980.60, up 20.09. On the New York Stock Exchange, there were 2,312 issues advancing, 1,021 declining and 161 unchanged. NYSE volume totaled 1,452,388,320 shares, compared with 1,521,445,400 Friday.

The NYSE Composite Index was 8692.46, up 46.96. The average price per share rose by 17 cents.

JLG Industries jumped 6.81, or 33%, to 27.56, by far the Big Board’s biggest percentage gainer. Oshkosh Truck said it will acquire JLG, a maker of aerialwork platforms, booms and related equipment, for more than $3 billion, positioning the producer of fire, military, concrete and garbage trucks to take better advantage of the global boom in nonresidential construction. Oshkosh Truck fell 3.05, or 5.5%, to 52.49. Terex, which also makes aerial work platforms, advanced 4.04, or 7.9%, to 55.42, and was also in the top five of New York Stock Exchange percentage gainers.

General Electric was a Dow industrial decliner, losing 42 cents, or 1.2%,to 35.56. Merrill Lynch cut shares to neutral from buy, saying the stock is pretty fairly priced and there could be risk to the conglomerate’s future estimates as incremental divestiture gains and low tax rates this year create earnings headwinds.

Home Depot dropped 55 cents, or 1.5%, to 36.35.