Dow Zooms to Record 4,801.80 as Yields Plunge : Markets: August retail sales are slower than expected, bringing hope that Fed will again lower interest rates.

Blue-chip stocks closed at record highs for the third consecutive day on Thursday, driven by a fresh decline in bond yields on signs of a sluggish economy.

But another batch of disappointing corporate earnings projections late in the day raised the specter of trouble ahead for stocks, some analysts said.

The Dow Jones industrial average climbed 36.28 points to a record 4,801.80, as investors focused on prospects for new cuts in short-term interest rates by the Federal Reserve Board.

The interest-rate optimism was fueled by the government’s report of weaker-than-expected August retail sales, which in turn drove long-term bond yields to 19-month lows. The benchmark 30-year Treasury bond yield tumbled to 6.46% from 6.52% on Wednesday. The new yield was the lowest since February, 1994.

Shorter-term bond yields also were sharply lower.

In Thursday’s auction of one-year Treasury bills, yields fell to the lowest level in more than a year. The average discount rate was 5.21%, down from 5.55% at the last auction Aug. 10.

In addition to the retail sales report, the government said first-time claims for jobless benefits shot up by 21,000 last week to the highest level in nearly two months, exceeding analysts’ expectations.

Both reports seemed to dramatically increase the likelihood of new reductions in short-term rates by the Fed. The central bank next meets on Sept. 26, though many analysts say the Fed may wait until November to lower rates.

On Wall Street, stocks’ advance was fairly broad, with winners outnumbering losers by 13 to 10 on the NYSE. Many other major indexes joined the Dow at new highs.

But the Nasdaq composite index eased 0.44 point to 1,066.96, reflecting a selloff in many technology stocks. Some semiconductor stocks, for example, tumbled after some analysts predicted demand for certain types of memory chips will slacken in 1996.

Brokerage Alex. Brown downgraded Cypress Semiconductor and Integrated Device Technology to “buy” from “strong buy,” citing lowered chip-demand expectations. Cypress plunged 5 7/8 to 39 7/8 and Integrated lost 6 to 52 1/4.

And after the market closed, Apple Computer warned of lower earnings in its current quarter, and software firm Oracle Corp. reported earnings that were below expectations. Both stocks slumped in after-hours trading.

Analysts say the market could face a major test in coming days: Whether gains in non-technology stocks can continue to lift the market enough to offset any further decline in tech shares.

Among Thursday’s highlights:

* Brand-name consumer stocks continued to lead the Dow higher. GE gained 1 3/4 to 62 3/8, McDonald’s jumped 1 1/4 to 39 5/8, Procter & Gamble surged 1 3/8 to 74 5/8 and American Express rose 1 5/8 to 43 5/8.

* Financial stocks soared as interest rates fell. J.P. Morgan shot up 2 1/8 to 78 1/4, brokerage Quick & Reilly advanced 2 3/8 to 41 5/8, and insurance firm CNA Financial leaped 3 7/8 to 102 1/4.

* Utility stocks, another interest-rate-sensitive group, also surged. The Dow Jones utility average jumped 2.50 points, or 1.22%, to 206.89.

Overseas, Tokyo’s Nikkei gained 144.29 points to 18,758.55, its highest close since Jan. 20, even though the dollar’s rally stalled.

In Mexico, a robust rally was interrupted by a 7.2-magnitude earthquake. But the Bolsa index still ended 4.42 points higher at 2,583.18.

* SLOW ECONOMY: Retail sales rose a sluggish 0.6% in August. D2