WALL STREET stocks turned lower yesterday, giving back earlier gains as technology shares slid for the third successive session despite a strong profit report from Microsoft.

The Dow Jones industrial average lost about 44 points after at first being up some 43 points. The result means the blue chip barometer has now given back much of its surprising bounce from last week's harrowing sell off.

The beleaguered Nasdaq market was dragged lower again by the technology sector as investors dumped computer related shares following a steep slide in Microsoft.

Market observers said investors were also spooked by reports of bearish comments from Ms Elaine Garzarelli, the Wall Street forecaster who predicted the 1987 stock market crash.

The Dow Jones industrial average fell 44.39 to 5,346.55.

Declines outnumbered advances by a 7-to-3 margin, with 724 up, 1,692 down and 759 unchanged.