* Yellen says Fed should be cautious in rate hike decision
* NATO issues condemnation after Russian convoy enters
* Retail shares surge, lifted by Ross Stores earnings
* Indexes: Dow and S&P off 0.2 percent, Nasdaq up 0.1
(Updates to close)
By Akane Otani
NEW YORK, Aug 22 Stocks ended mostly lower on
Friday as Ukraine-Russia tensions reignited and remarks from
Federal Reserve Chair Janet Yellen failed to give investors any
clues on interest rate hikes.
The S&P 500 retreated from a record close it set on Thursday
after Ukrainian officials said Russia had launched a "direct
invasion" by sending a convoy of trucks across the border.
Investors had been hoping that Yellen would catapult the S&P
to the milestone 2,000 level.
While Russia has maintained the trucks contain humanitarian
aid, NATO Secretary General Anders Fogh Rasmussen condemned the
move as an "alarming build-up." He called on Russia to "stop
"People are thinking maybe the convoy sent wasn't in line
with an acknowledgment of a Red Cross-led endeavor and was
something taken on by Russia unilaterally, which has
reestablished a little bit of investor anxiety," said Mark
Luschini, chief investment strategist at Janney Montgomery Scott
Markets were also pressured by comments from Jackson Hole,
Wyoming, where Yellen and European Central Bank President Mario
Draghi delivered remarks on the labor market.
Yellen did not give a timeline for Fed interest rate hikes,
saying that with slack remaining in the labor market, "there is
no simple recipe for appropriate policy."
The comments "were more hawkish than what the market was
anticipating" because Yellen kept the Fed's ability to hike
interest rates sooner than expected on the table, said Karyn
Cavanaugh, senior market strategist with Voya Investment
The Dow Jones industrial average fell 38.27 points,
or 0.22 percent, to 17,001.22, the S&P 500 ended down
3.97 points, or 0.2 percent, at 1,988.4 and the Nasdaq Composite
added 6.45 points, or 0.14 percent, to 4,538.55.
Despite the day's losses, all three major indexes posted
gains for the week, with the Dow up 2 percent, the S&P up 1.7
percent and the Nasdaq up 1.6 percent. It was the strongest week
of gains for both the Dow and the S&P since April, and the third
straight week of gains for all three indexes.
Retailers moved higher, led by a 7.4 percent advance in Ross
Stores to $74.37 after the apparel and home fashion
retailer posted second-quarter results. The S&P retail index
gained 0.6 percent, posting its best week since late
The Nasdaq Composite was lifted by Keurig Green Mountain
, whose shares soared 13.3 percent to $133.36. The K-cup
coffee-pod maker said earlier in the day it had inked a deal to
make and sell Kraft Foods Group Inc's coffee.
Peregrine Semiconductor shares jumped 62.9 percent
to $12.53 after Murata Electronics North America said it would
buy the portion of the chipmaker it does not already own for
$12.50 per share.
About 4.1 billion shares traded on all U.S. platforms,
according to BATS exchange data, compared with the five-day
average of 5.1 billion.
(Editing by Megan Davies, Bernadette Baum, Nick Zieminski and