Stocks ended mostly lower as economic data and overseas concerns weighed on investor sentiment, though blue chips eked out their first gains in three days with a late-day surge.

Buyers returned late in the final hour of trading, cutting earlier losses driven by worse-than-expected economic growth and job-market data. The Dow Jones Industrial Average rose 20 points, or 0.2%, to 13,146. Alcoa and Caterpillar led blue chips higher.

The Standard & Poor's 500-stock index lost 2.3 points, or 0.2%, to 1,403, after falling as low as 1391.43 in intraday trading. The Nasdaq Composite declined 9.6 points, or 0.3%, to 3076.

Gains in utilities and health care offset declines in the financials and telecommunications sectors. Best Buy led the S&P 500 lower, tumbling 7% after reporting fiscal fourth-quarter revenue that missed analysts' expectations.

The economy expanded at an unrevised 3% in the fourth quarter of 2011, the Commerce Department said in its third and final estimate for the period. The gain, while the strongest since the second quarter of 2008, lagged behind expectations of a 3.2% increase.

The number of US workers filing new applications for unemployment benefits was higher than expected, though it fell to its lowest level since April 2008, indicating steady improvement in the labour market.

Manufacturing activity in the Federal Reserve Bank of Kansas City's district slowed this month, in part because of a drag from higher gasoline prices, the bank said in a report.

Alongside its quarterly results, Best Buy unveiled plans to cut 400 back-office jobs and close 50 big-box stores as it seeks to better compete with online retailers such as Amazon.com. Best Buy reported a big loss amid US$2.6 billion in restructuring and other charges.

In other corporate news, Illumina gained 5.1% after Switzerland's Roche Holding upped its bid to buy the gene-sequencing company. The new deal would value Illumina at more than US$6.5 billion, up from US$5.7 billion previously.

Chelsea Therapeutics plunged 29% after the company said the Food and Drug Administration asked for more data for its Northera low-blood-pressure medication.

Red Hat surged 20% after the open-source software company reported fiscal fourth-quarter earnings and revenue that exceeded estimates, boosted by strong growth in subscription revenue.

Red Lion Hotels climbed 5.7% as it said it would explore strategic alternatives to maximise shareholder value, including the potential sale of the company.

Mosaic slid 5.1% as its fiscal third-quarter profit slumped 50%. The fertiliser producer's bottom line missed analysts' expectations as raw-materials costs and slow buying by farmers cut into margins.

Mobile-advertising service provider Millenial Media surged 92% on its first day of trading as a public company. The company's stock opened at US$25 a share on the New York Stock Exchange, up 92% from its initial public offering price of US$13.

For Australian ADRs listed on the NYSE, BHP Billiton strengthened 62 cents (0.88%) to $71.39, ResMed improved 3 cents (0.1%) to $30.99, Telstra Corporation increased 23 cents (1.36%) to $17.20, Telecom Corporation of NZ rose 6 cents (0.6%) to $10.01 and Westpac slipped 56 cents (0.49%) to $113.11.

The US dollar gained against the euro as peripheral euro-zone bond yields rose and Spanish workers staged a nationwide strike over austerity measures ahead of the government's presentation of its latest budget plans.

US Treasurys gained as concerns about Europe's financial condition and possible snags in the US economic recovery stirred up demand for relatively safer assets. At 7:45AM (AEST), the 10-year US Treasury note was 2.16% and the 5-year note was 1.01%.

European stock markets fell sharply, led by banks, after weak economic data in Europe and the US, while bond yields in Italy and Spain jumped. Losses for car makers also weighed heavily on German stocks.

The Stoxx Europe 600 index closed 1.3% lower at 260.74.

Shares fell after the European Commission's economic sentiment indicator for the euro zone fell to 94.4 in March from 94.5 in February, disappointing analysts' expectations for an unchanged reading.

Italy's FTSE MIB index under performed other European markets, plunging 3.3% to 15,908.85, its lowest close since late January.

Banks were among major decliners. Banca Monte dei Paschi di Siena SpA sank 11% after reporting a EUR4.7 billion loss in 2011 due to a goodwill impairment charge. Banca Popolare di Milano SCARL lost 10.4% and UniCredit SpA fell 5.8%.

Yields on 10-year Italian government bonds rose 0.18 of one percentage point to 5.21%.

Spain's IBEX 35 index fell 0.9% to 7,911.00 as a general strike against government austerity measures got underway a day ahead of the government's 2012 budget. Yields on 10-year Spanish government bonds added 0.14 of one percentage point to 5.44%.

Euro-zone finance ministers will meet in Copenhagen and are expected to discuss an increase in the region's rescue funds to prevent the spread of the sovereign-debt crisis.

The German DAX 30 index fell 1.8% to 6,875.15. Car makers weighed on sentiment after S&P said the European car sector is heading toward at least a 5% decline 2012 because of weak economic growth and "downgrades appear possible".

Daimler AG lost 3.3%, Volkswagen AG fell 3.9% and BMW AG declined 2.1%.

The FTSE 100 index dropped 1.2% to 5,742.03. Royal Dutch Shell PLC gave up 1.3% and BP PLC fell 2%. Marks & Spencer Group PLC lost 2.9%. HSBC Holdings PLC dropped 2.6% and Barclays PLC fell 4.7%.

Rio Tinto firmed 59.50 pence (1.79%) to 3,390.16 pence and BHP Billiton weakened 7.50 pence (0.4%) to 1,874.15 pence.

Auto makers also declined in France. Peugeot SA lost 5.7% and Renault SA gave up 2.8%. Oil group Total SA lost 0.5% in the wake of a gas leak, which started on Sunday in the North Sea. The drop weighed on the CAC 40 index, which settled 1.4% lower at 3,381.12.

Asian stock markets ended mostly lower, with resources and energy stocks struggling amid falling commodity and crude prices, as investors grappled with concerns about the pace of the global economic recovery.

Hong Kong's Hang Seng Index fell 1.3%, and the Shanghai Composite index declined 1.4%, extending the previous session's steep fall.

Japan's Nikkei Stock Average lost 0.7%, while the South Korean Kospi fell 0.9%.

Commodity-trading houses were under pressure in Japan, with Mitsui & Co. falling 3.3%, and Mitsubishi Corp. losing 2.8%.

In Hong Kong, Aluminum Corp. of China fell 1.3%, and PetroChina Ltd. dropped 2%.

Oil giant Cnooc Ltd. lost 3.3% after the firm said late on Wednesday that its fiscal-year net profit rose 29% to US$11.2 billion, a figure that slightly exceeded analysts forecasts. However, the company also set a conservative production output target for this year.

In other Chinese earnings news, China Shipping Container Lines fell 2% in Hong Kong after it swung to a 2011 net loss of US$428 million due to rising fuel costs.

Port operator China Merchants Holdings International Co. fell 2.7% in Hong Kong after its own annual net profit slipped 5.3%, weighed down by higher costs.

Markets have been driven up by liquidity from central banks, he said, adding that "if you're a short-term investor...you're going to try to lock in the profits that you've made."

Japanese technology stocks lost ground after a weaker-than-expected outlook from US technology firm Applied Materials Inc. sent the US Philadelphia Semiconductor Index down 1.3% on Wednesday.

Advantest Corp. lost 2.9%, Tokyo Electron fell 3%, and Kyocera Corp. shed 1.9%.

Base metals closed mixed on the London Metal Exchange as a strong US dollar and "risk-off" sentiment weighed on prices, while demand from dip buyers cushioned the markets on pullbacks.

Crude-oil futures settled at a six-week low, reeling from weak US equities, comments by Saudi Arabia's oil minister that his country is capable of more supplies to counter high prices, and expectations the West and the US may release emergency crude reserves to also battle higher energy prices.

Gold futures eased for a third consecutive day, as traders continued to cash out of the precious metal because of weak physical demand and disappointment that prices failed to hold their gains earlier in the week.