NEW YORK - US STOCKS ended mainly lower on Friday with investors fretting over fears that recovery from the global recession remains distant.

The blue-chip Dow Jones Industrial Average fell 41,04 points (0.50 per cent) to 8,142.13 at the closing bell of a lackluster session.

The tech-heavy Nasdaq edged up 3.48 points (0.20 per cent) to 1,756.03 while the broad Standard & Poor's 500 index shed 3.88 points (0.44 per cent) to a preliminary close of 878.80.

Ahead of the opening, the government said the US trade deficit narrowed sharply in May to its lowest level in nearly a decade, led by a plunge in imported oil.

The deficit fell nearly 10 per cent in May to a seasonally adjusted US$26.0 billion, the lowest level since November 1999.

The news appeared moderately positive for the US economy but also reflected weak global trade flows.

'This was a good report as far as it relates to second-quarter growth,' said Joel Naroff at Naroff Economic Advisors. 'What is not nice to see is the continued weakness in domestic spending.' The economic outlook 'has most folks confused,' said Al Goldman at Wells Fargo Advisors.

'We believe the data suggests that the end of the recession is near - that's the good news for investors. However, the data also appears to indicate, as we have been saying for a month, that a strong economy is not just around the corner.' -- AFP