STOCKS shot higher again yesterday, putting some indexes within striking distance of record highs, after investors shrugged off the inflationary implications of a robust economic reading.

The Dow's closing figure was down from a 95 point gain that put it within 20 points of record territory, but enough to finish above 7,000 for the first time since mid March.

Broader stock measures kept pace with the blue chip advance for the second straight day. The Nasdaq market posted the day's biggest gains as leading computer related issues rallied. The Nasdaq composite index rose 18.13 to 1,260.76.

Stocks had started the session weaker as interest rates rose in the bond market after the US Commerce Department reported that US economic growth exploded at an annual rate of 5.6 per cent in the first quarter, the strongest in nine years.

The Standard and Poor's 500 stock list rose 7.29 to 801 34 pushing back above 800 for the first time since mid March.