By Kate Gibson, MarketWatch U.S. stocks declined modestly on Friday as economic reports from Europe furthered concern about the global economy. The Dow Jones Industrial Average (DJI) fell 27.17 points, or 0.2%, to 12,433.79, with McDonald's Corp. (MCD) among the components down the most. Shares of the fast-food chain declined 3% after it reported global sales at stores open at least 13 months rose 3.3% in May, short of expectations, on sales declines in Japan and China. The S&P 500 (SPX) declined 3.76 points, or 0.3%, to 1,311.23. The Nasdaq Composite (RIXF) shed 5.43 points, or 0.2%, to 2,825.59. Decliners outpaced advancers nearly 2-to1 on the New York Stock Exchange, where 84 million shares traded as of 10 a.m. Eastern. Cheer over China's first interest-rate cut in years also dissipated as investors considered what Thursday's move said about where the global economy is headed. Instead of boosting confidence that China's economic moderation can be reversed, the People's Bank of China's cut "reinforced why it happened to begin with, the slowdown is beginning to hurt," emailed Peter Boockvar, equity strategist at Miller Tabak. And, reports Friday included German exports declining more than projected and Italian industrial production contracting in April. In the U.S., the Commerce Department reported the U.S. trade deficit narrowed 4.9% in April to $50.1 billion.