DOW SETS NEW HIGH : CONFIDENCE IN CONSUMERS SPURS 4TH STRAIGHT RECORD CLOSE.

Byline: Patricia Lamiell Associated Press 

Stock indexes sprinted to a second week of new highs as traders, deciding that households will spend freely for the holidays and into the first quarter of 1997, pushed consumer shares higher Monday.

The Dow Jones industrial average gained 35.78 to 6,255.60, topping Friday's record close and setting a new high for the fourth session in a row.

The New York Stock Exchange, Nasdaq and Standard & Poor's 500-stock indexes also reached new highs, although they posted narrower gains.

But the American Stock Exchange's market value index declined slightly, and traders expressed some caution that the rally has been confined to blue-chip names.

``The strength was in blue chips rather than the broad list,'' said Larry Wachtel, a market analyst at Prudential Securities. ``But under the umbrella of the strength in blue chips, there is a correction taking place.''

The Standard & Poor's 500-stock index rose 1.05 to 731.87, and the NYSE's composite index rose 0.51 to 386.83, each setting their fifth straight high. Both pushed through record highs set last Thursday.

The Nasdaq composite index rose 5.16 to a record 1,262.67, reaching its first closing high since the 1,258.10 of Oct. 15. But the American Stock Exchange's market value index fell 0.66 to 579.73, closing well below its all-time high of 614.99 set May 22.

On the NYSE, advancing issues edged out decliners by a 7-to-5 margin. Volume was moderate at 353.96 million shares as of 4 p.m., dampened by Monday's Veterans Day holiday, which closed the government bond market and most banks.

Blue chips are rising as investors continue to pour money into the stock market. Portfolio managers, already dizzy from stocks' high valuations, have to put that money to work, so they invest conservatively in high-profile, blue chip names, Wachtel said.

``Nobody's going to fault me for paying up for General Electric,'' the analyst said.

Among blue-chip names, consumer-related stocks rose as investors decided that this week's economic data will not show sufficient inflation to warrant an increase in interest rates.

The Federal Reserve's policy-makers are not expected to raise rates Wednesday when they meet to evaluate the risk of higher inflation. If rates remain stable, investors are betting that consumer spending should be robust through the holiday season, analysts said.

The government's October wholesale price index is due out Wednesday, the consumer price index and retail sales figures are due Thursday, and industrial production and factory-use data are expected Friday.

``The general sentiment is that the consumer is feeling better, his income up and his debt is manageable,'' said Larry Rice, chief investment officer at Josephthal, Lyon & Ross.

Consumer stocks took the lead among the Dow industrials, with some helped by company- or industry-specific news. Philip Morris rose 1-5/8 to 99-3/8 after the College Retirement Equities Fund rejected a resolution urging the huge investment fund to sell its tobacco investments.

Eastman Kodak rose 1-5/8 to 82-5/8 after First Boston named the photographic supply company its feature stock of the week.