Stocks rose in New York yesterday after the US government's report of a decline in wholesale prices in April helped quell recent worries about rising interest rates.

But investors proved that a single report was not enough to eliminate all their fears, and they took profits in late afternoon, leaving market averages only slightly higher.

The Dow Jones industrial average rose 63.40, or 0.6 per cent, to close at 10,609.37. The Nasdaq composite index ended up 29.49, or 0.8 per cent, on 3,529.07. Earlier in the session, each index was up as much as 120 points.

The Standard and Poor's 500 rose 13.15 to 1,420.96.

Advancing issues outnumbered decliners by a six-to-five margin on the New York Stock Exchange, with 1,604 up, 1,330 down and 486 unchanged.

NYSE volume totalled 853.87 million shares, against 947.41 million in the previous session.

The Russell 2000 index of smaller companies rose 3.76 to 493.15.