THE Dow Jones industrial average edged higher yesterday to set its fifth record of the New Year as late buying helped the market overcome profit taking in the shares of oil companies. The Dow index surpassed Friday's record finish of 6,703.79. In the broader market, advancing issues led declines 1,366 to 1,159 on active volume of 443 million shares on the New York Stock Exchange.

The market also was devoid of the volatility that has marked trading since the start of the year.

J.P. Morgan & Co. Inc. was the strongest performer among Dow components, rising 2 3/4 to 102 1/2 after reporting stronger than expected fourth quarter earnings. The bank's results triggered a rally in financial shares, but analysts said activity appeared restrained ahead of today's release of the December consumer price index.

The Nasdaq Composite index fell 1.11 points to 1,330.91. The Standard & Poor's composite index of 500 stocks rose 0.01 to 759.51, a record.