US stocks finished lower as euphoria on strong GDP figures for the fourth quarter of 2009 was overshadowed by tech companies' caution on sales.

Operating system giant Microsoft and memory stick group SanDisk were among the stocks dragging the NASDAQ lower. Microsoft reported a 60% rise in profits late last night, but chief financial officer Peter Klein said the firm has not seen any recovery in business software.

SanDisk moved into profit in the fourth quarter but was cautious on 2010 prospects.

The Dow Jones finished down 53 points at 10,067. The S&P 500 finished down 10 at 1,073 and the tech loaded NASDAQ was 31 lower at 2,147.

Shares were also hit by the continued worries about the financial positions of Greece, Spain and Portugal.

The better-than-expected economic growth reported earlier today failed to have any lasting effect. US GDP rose by 5.7% in the fourth quarter of 2009, ahead of expectations of a 4.2% rise. The surge is the fastest rate of increase for six years. Consumer sentiment has also improved during January.

Strong results from Microsoft and Amazon after the bell yesterday initially boosted sentiment, although Microsoft shares are now lower. Microsoft posted a 60% rise in net profit to $6.7bn, while Amazon did even better with net income for the three months to December up 71% to $384m, or 85 cents per share. Revenue rose 42% to $9.5bn from a year ago.

Broker comment is driving demand for the world's biggest retailer Wal-Mart. Goldman Sachs has raised its rating on the owner of Asda to 'buy' from 'neutral'. It also increased its earnings per share forecast from $3.97 to $4.11.

Truck maker Paccar is also wanted after its fourth quarter earnings per share of 16 cents were more than double what the market had been expecting.

Networking equipment maker Juniper Networks reported underlying fourth quarter earnings per share came in at 32 cents per shares, well above market expectations.

Label maker Avery Dennison fell after its fourth quarter earnings were well below expectations.

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