WALL Street stocks turned lower near the close as a discouraging report on semi conductor sales dampened enthusiasm over a tame inflation report that sent interest rates lower in the bond market.

The Dow Jones industrial average dropped 32.18 points to close at 5,681.31. The yield on the 30 year Treasury bond slipped below 6.7 per cent for the first time since early April, when inflation fears were becoming rampant.

Advancing issues outnumbered decliners by a six to five margin on the New York Stock Exchange, with 1,264 up, 1,048 down and 849 unchanged.