WALL Street stocks rose modestly, extending the market's record setting advance as investors remained confident about the prospects for tame inflation and healthy profits.

The Dow Jones industrial average rose 36.56 points to close at 7,575.83. The Dow, up 17.5 per cent on the year, has now gained more than 300 points over the past five sessions.

Broadmarket indexes also edged further into record territory. The technology heavy Nasdaq market turned higher in the afternoon after struggling through much of the session.

Heavy industrial shares, which have lagged behind other popular sectors such as technology and drugs, posted a strong performance for the second straight day.

With popular market averages closing at record highs for three or four days in a row, investors were seeking those sectors that hadn't grown pricey, analysts said.

The day's advance also came despite uncertainty about a report tomorrow on retail sales.