* Wal-Mart climbs after results
* Berkshire Hathaway to buy Duracell from Procter & Gamble
* Initial jobless claims above expectations
* Indexes up: Dow 0.49 pct, S&P 0.32 pct, Nasdaq 0.56 pct (Updates to late morning)
By Chuck Mikolajczak
NEW YORK, Nov 13 (Reuters) - U.S. stocks advanced modestly on Thursday to send the Dow and S&P to new record intraday highs following earnings from Wal-Mart and data on the labor market.
Wal-Mart shares climbed 3.4 percent to $81.92 as one of the biggest boosts to both the Dow and S&P 500 after the retail giant posted a 2.9 percent increase in third-quarter revenue.
Weekly initial jobless claims rose to 290,000, above expectations for 280,000 claims, but remained near a 14-year low, and stood below the 300,000 mark for a ninth straight week.
The Dow and S&P 500 had ended slightly lower on Wednesday to break a five-day streak of record closing highs, while the Nasdaq managed to advance. While stocks have rallied of late, moved have been modest, with the S&P 500 yet to post a gain of more than 1 percent this month.
"It's great to see stocks going up, but at the same time investors are troubled about something, and what they are a little bit troubled about is valuation," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.
"That's why you get this creep higher, not euphoria."
The S&P 500 has rallied more than 9 percent from a six-month low in October, buoyed by supportive economic data and corporate earnings. For the year so far, it is up 10.6 percent.
The Dow Jones industrial average rose 85.93 points, or 0.49 percent, to 17,698.13, the S&P 500 gained 6.6 points, or 0.32 percent, to 2,044.85 and the Nasdaq Composite added 26.12 points, or 0.56 percent, to 4,701.26.
J.C. Penney shares tumbled 9.7 percent to $7.01 after it reported a smaller-than-expected quarterly loss Wednesday but said same-store sales were flat and slightly cut its full-year revenue forecast.
Kohl's Corp lost 3.7 percent to $55.79. The department store operator reported lower-than-expected quarterly sales and profit.
As earnings season winds down, Thomson Reuters data showed that of 460 companies in the S&P 500 to report, 74.6 percent beat expectations, above the 63 percent average beat rate since 1994 and 67 percent for the past four quarters. Earnings overall were expected to grow 10.1 percent over the year-ago period.
DreamWorks Animation shares jumped 17.2 percent to $26.22 after the New York Times cited sources as saying toymaker Hasbro Inc was in talks to buy the Hollywood studio. Hasbro shares lost 5.6 percent to $54.24.
Berkshire Hathaway Inc said it would acquire Procter & Gamble Co's Duracell battery business. Procter shares edged up 0.4 percent at $89.80 while Berskhire's Class B shares edged up 0.5 percent to $146.21.
Editing by Bernadette Baum and Nick Zieminski