WALL Street stocks rallied yesterday, boosting the Dow Jones industrial average above 6,700 for the first time, despite another strong economic report that undermined hopes for tame inflation and sent interest rates soaring.

The Dow Jones industrials rose 78.12 to close at 6,703.79, en route to its fourth record high this week after erasing a nearly 68 point opening slide.

The Dow, which broke above 6,000 for the first time less than three months ago, gained 159.70 for the week.

Advancing issues had trailed decliners by more than five to one near the opening on the New York Stock Exchange, but finished with a narrow lead, with 1,275 up, 1,234 down and 841 unchanged.