THE Dow Jones industrial average broke 7,000 for the first time yesterday, marking the fastest 1,000 point rise ever and reaching yet another milestone in one of the most powerful bull markets in history.

The biggest gainers in the blue chip average included Merck, Philip Morris, Caterpillar, J.P. Morgan, and IBM.

Broader measures also posted big gains, with the Standard and Poor's 500 list and the NYSE composite index closing at record highs for the third straight session.

The Commerce Department reported that retail sales rose a moderate 0.6 per cent in January. The report also revealed that December sales proved more disappointing than previously reported, rising an anaemic 0.3 per cent, just half the government's month old estimate of 0.6 per cent.

Advancing issues outnumbered decliners by more than a 2 to 1 margin on the New York Stock Exchange, with 1,739 up, 843 down and 764 unchanged.