The Dow Jones industrial average dropped 68 points or 0.54% to 12,666. The Standard & Poor's 500 Index lost 4 points or 0.34% to 1,314. The Nasdaq Composite Index fell 1 point or 0.05% to 2,803.

The US gross domestic product grew at an annual rate of 2.8% in the last quarter of 2011, up from 1.8% rise in the third quarter. Even though GDP expanded at its fastest pace in 1-1/2 years it stood below market's expectations of a 3.0% growth.

European stocks were broadly lower, with the Stoxx Europe 600 dropping 0.6%, as investors remain wary despite optimism Greece will reach a debt-swap deal with private creditors.

In corporate news, Ford earnings came in below expectations, weighing on market sentiment.