* Russian troop movements in Ukraine spurs concern
* U.S. GDP revised higher in Q2, jobless claims fall
* Banks in focus after reports of cyber attacks
* Indexes down: Dow 0.17 pct, S&P 0.09, Nasdaq 0.17 pct
(Updates to afternoon trading, changes byline)
By Chuck Mikolajczak
NEW YORK, Aug 28 U.S. stocks fell moderately on
Thursday after the latest flare of tensions between Ukraine and
Russian forces, snapping investors' focus back on the volatile
region, though losses were tempered by the latest batch of U.S.
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. NATO said well over 1,000
Russian troops were operating inside Ukraine.
While few U.S. companies have heavy exposure to either
country, investors are worried about the potential fallout from
any escalation in hostility, including increased sanctions.
"The data did cheer things up but the stuff that is
happening in the Ukraine is worrisome and I'm glad to at least
see a little bit of red out there today because of that," said
Kim Forrest, senior equity research analyst, Fort Pitt Capital
Group in Pittsburgh.
An index of major shares in Europe, which has more exposure
to the region, closed down 0.6 percent. If European
Reconomic growth is depressed by the conflict, that could have
an indirect impact on the United States. Russia's
dollar-denominated RTS index slumped 3.3 percent while
the Market Vectors Russia Exchange-Traded Fund fell 2.8
percent to $24.37.
The Dow Jones industrial average fell 28.59 points or
0.17 percent, to 17,093.42, the S&P 500 lost 1.75 points
or 0.09 percent, to 1,998.37 and the Nasdaq Composite
dropped 7.71 points or 0.17 percent, to 4,561.91.
The benchmark S&P 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, while jobless claims fell for a second
In addition, July pending home sales rose far more than had
been expected to an 11-month high. The PHLX housing index
lost 0.4 percent, but was off earlier lows.
"GDP is in the right direction and who knows where it is
going to go the next revision, but it wasn't that big of a
revision to say it was an anomaly," said Forrest.
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 $59.21. The S&P financial index lost 0.3
Abercrombie & Fitch Co lost 3.8 percent to $42.33
after the retailer's second-quarter same-store sales fell more
than expected. Williams-Sonoma Inc tumbled 11.1 percent
to $66.57 a day after reporting its results and giving an
(Editing by Chizu Nomiyama and Meredith Mazzilli)