Updated from 4:04 p.m. EDTWall Street sold off for a third straight session Friday, as a mild profit improvement at General Electric ( GE) proved insufficient to relieve the market of its obsession with overseas violence. The Dow Jones Industrial Average fell 106.94 points, or 0.99%, to 10,739.35, and the S&P 500 lost 6.10 points, or 0.49%, at 1236.19. The Nasdaq Composite dropped 16.76 points, or 0.82%, to 2037.35, putting the tech-laden measure near levels not seen since last October. Stocks in the U.S. sold off for most of the week on a steady stream of dour news out of the Middle East. For the last three days, the Dow lost 3.5%, and the Nasdaq plummeted 4.3%, the worst three-session decline since April 2005. For the full week, the Dow fell 3.2%, the S&P 500 finished down 2.3%, and the Nasdaq dropped 4.4%. On the Dow, components United Technologies ( UTX), General Motors ( GM) and Boeing ( BA) all fell by 2.9% or more. About 1.72 billion shares changed hands on the New York Stock Exchange, and volume on the Nasdaq was 1.81 billion shares. Decliners outpaced advancers 2 to 1. Oil continued to hit new all-time highs, pushing past $78 a barrel at one point as Israel pressed a military offensive into Lebanon. A total of 56 people are reported dead in the incursion, which included a second bombing of Beirut's airport on Friday. Crude for August delivery added 33 cents to $77.03 a barrel, a record close. For the week, crude prices rose 4%. "It comes as no great surprise that we've switched from implications of a slowing economy vs. inflation to the geopolitical conflict," said Paul Nolte, director of investments with Hinsdale Associates. "The Middle East struggle hasn't been factored into anyone's plans. With this comes higher oil prices, keeping pressure on the consumer. This environment is still one of a slowing economy." The 10-year Treasury was up 1/32 in price, yielding 5.06%, while the dollar rose against the yen after Japan's central bank raised interest rates by a quarter-point but pledged to keep them low in the near future. "The earnings news and economic data today will be subject to the headlines from the Middle East," said Peter Cardillo, chief market strategist with S.W. Bach & Co. "It's a critical day, especially heading into the weekend. No one will want to take long positions ahead of the weekend." Precious metals were stronger. Gold added $13.60 to close at $668 an ounce, silver was up 4 cents at $11.53 an ounce, and copper was higher by 3.5 cents at $3.71 a pound.