STOCKS advanced further into record territory in New York yesterday, bolstered by another mild reading on inflation that sent interest rates lower again in the bond market.

On Wall Street, the Dow Jones industrial average gained 42.11 points to close at 5,624.71 as the blue-chip sector continued to show renewed vigour.

The broad market also rose, with major indecies adding to Monday's record highs in heavy trading.

Bonds rose after the government reported that consumer prices climbed 0.4% in April, but that excluding the volatile energy and food sectors, the core rate of inflation was just 0.1%.

The markets were also helped by a Commerce Department report that retail sales dropped by 0.3% in April.

Both reports indicated economic growth is moderate enough to dissuade the Federal Reserve from raising short-term interest rates on May 21st.