WALL Street stocks rose sharply yesterday before retreating from record levels to leave the Dow Jones industrial average just short of recovering the previous day's losses.

The rise appeared on pace to threaten the Dow's record close of 7,796.51 one week earlier, but investors quelled their enthusiasm in mid afternoon trading, erasing all but 33.47 points of its 116.48 point gain and closing at 7,687.72.

Advances outnumbered declines by a 13 to 7 margin on the New York Stock Exchange, with 1,815 up, 973 down and 583 unchanged.

The Standard and Poor's 500 stock list was up 6.57 at 890.25, and the NYSE's composite index was up 2.37 at 463.30. The American Stock Exchange composite index was up 3.97 at 620.07.