Maxperson
Morkus from Orkus
Yep, dwarves of old. But in the Silmarilion, The Hobbit, Lord of the Ring and the Various "Age" books, dwarves don't. Their magic is part of the past and of legends. They abandoned magic because of the "corrupting" effect it had on them. So yep, I am partialy right on that account.
They do in the Silmarillion. The craft masks that stop dragonfire. Weapons and armor better than all but the greatest of Noldor smiths. Those had magic.