* GE, Bank of America results raise recovery concerns
* Weak consumer sentiment overshadows industrial data
* Indexes down: Dow 1 pct, S&P 500 1.2 pct, Nasdaq 1.2 pct (Updates to midday)
By Angela Moon
NEW YORK, Oct 16 (Reuters) - U.S. stocks fell on Friday after disappointing results from General Electric Co and Bank of America Corp raised doubts about an economic recovery, denting a two-day rally by the Dow.
Conglomerate GE reported weaker-than-expected revenue and Bank of America posted a $1 billion loss, reflecting the struggle businesses and consumers face with managing their debt.
Friday's results contrasted sharply with those of JPMorgan Chase & Co and Intel Corp earlier this week, which breezed past Wall Street forecasts and helped the Dow to close above 10,000 on two straight days.
"The disappointing results from Bank of America and GE do not mean the whole earnings season will go sour, but it is raising a question mark among investors," said Peter Cardillo, chief market economist at Avalon Partners in New York.
The Dow Jones industrial average was down 104.82 points, or 1.04 percent, at 9,958.12. The Standard & Poor's 500 Index fell 12.61 points, or 1.15 percent, to 1,083.95. The Nasdaq Composite Index lost 26.39 points, or 1.21 percent, to 2,146.90.
Bank of America's shares fell 4.5 percent to $17.29, and GE dropped 4.7 percent to $16.01.
Further pressuring the market was the Reuters/University of Michigan Surveys of Consumers, which said its preliminary index of sentiment for October fell unexpectedly on concerns over personal finances. The news overshadowed an earlier report that showed industrial production rose in September.
But traders said Friday's decline may push the market higher next week as investors see an opportunity to jump in.
"In the options market, the majority of sentiment indicators are still in a mode that are bullish ... Traders expect to see more upside surprises (in earnings) than downside," said Randy Frederick, director of trading and derivatives at Charles Schwab in New York.
Among stocks that gained, Google Inc rose 4.1 percent to $551.71 after the Web search company reported earnings and revenue late on Thursday that beat forecasts. Google eased concerns about the technology sector.
International Business Machines Corp shares fell 4.8 percent to $121.86 on a mixed earnings report that failed to satisfy investors whose expectations had risen along a sharp advance in the stock over the past three months.
The U.S. dollar edged up 0.2 percent against a basket of currencies. Lately the currency, seen as a safe-haven investment, often rises when stocks fall. (Editing by Kenneth Barry)