* Investors concerned by report of Russian troop movements
* GDP revised higher in Q2, jobless claims fall
* Banks in focus after reports of cyber attacks
* Indexes down: Dow 0.4 pct, S&P and Nasdaq 0.3 pct
(Updates to open, adds analyst comment and housing data)
By Ryan Vlastelica
NEW YORK, Aug 28 U.S. stocks fell on Thursday
after Ukraine's president said Russian forces had been brought
into his country, bringing concerns over the volatile region
back into focus and overshadowing some positive economic data.
Worries over tension abroad had largely faded from Wall
Street, with major indexes seeing few negative days over the
past two weeks and both the Dow and S&P hitting records.
Ukraine's security and defense council said the border town
of Novoazovsk and other parts of Ukraine's south-east had fallen
under the control of Russian forces who, together with rebels,
were staging a counter-offensive.
While few U.S. companies have heavy exposure to either
country, investors are worried about the potential fallout from
any escalation in tensions, including increased sanctions.
"The longer this situation goes on, the bigger concern it
will become for the market as it is unclear how it gets
resolved," said Doug Cote, chief market strategist at Voya
Investment Management in New York.
An index of major shares in Europe, which has more exposure
to the region, fell 0.6 percent. If European growth is
depressed by the conflict, that could have an indirect impact on
the United States. Russia's dollar-denominated RTS index
slumped 3.6 percent while the Market Vectors Russia
Exchange-Traded Fund fell 2.9 percent to $24.37.
The Dow Jones industrial average fell 71.92 points or
0.42 percent, to 17,050.09, the S&P 500 lost 5.87 points
or 0.29 percent, to 1,994.25 and the Nasdaq Composite
dropped 13.58 points or 0.3 percent, to 4,556.05.
The day's decline is the S&P's biggest since Aug. 7. The
index has risen for 11 of the past 14 sessions, and has closed
above 2,000 for the past two days. However, recent daily moves
have been slight and trading volume has been among the lightest
of the year.
A trio of economic reports pointed to improving conditions.
The U.S. economy rebounded more strongly than initially thought
in the second quarter, with gross domestic product growing by
4.2 percent. Separately, jobless claims fell for a second
straight week, the latest sign of improving labor market
conditions, and July pending home sales rose far more than had
"This data is so good and so strong that it raises the
concern that the Federal Reserve will have to come in earlier
when it comes to raising rates," said Cote, who helps oversee
The Federal Bureau of Investigation said it was
investigating media reports that several U.S. financial firms
have been victims of recent cyber attacks. JPMorgan Chase & Co
said it was investigating a possible attack; shares fell
0.6 percent to $59.18.
Abercrombie & Fitch Co sank after the retailer's
second-quarter same-store sales fell more than expected.
Williams-Sonoma Inc tumbled 10.5 percent
to $67 a day after it reported its second-quarter results and
giving an outlook.
(Editing by Chizu Nomiyama and Meredith Mazzilli)