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* Alibaba tumbles despite upbeat earnings report

* KKR rises on deal with India’s Reliance Industries
(Updates with close of trading)

By Noel Randewich

May 22 (Reuters) – Wall Street ended mixed on Friday in a
mostly tame finish to a week of strong gains, as investors
gauged China-U.S. tensions and amid ongoing uncertainty about
the pace of economic recovery from the coronavirus.

President Donald Trump’s warning on Thursday that the U.S.
would react strongly to China’s plan for a national security law
in Hong Kong has raised concerns over Washington and Beijing’s
possibly reneging on their Phase 1 trade deal.

Late in the session, stocks edged lower after the U.S.
Commerce Department said it was adding 33 Chinese companies and
other institutions to an economic blacklist for human rights
violations and to address U.S. national security concerns.

The increasing rhetoric between Washington and Beijing has
knocked Wall Street off multi-month highs, although the three
main indexes still all rose around 3% for the week, fueled by
optimism about an eventual coronavirus vaccine and the easing of
virus-related curbs.

“We still think COVID-19 concerns are in the driver’s seat,
but we could see U.S.-China relations move back into the front
seat,” said Eric Freedman, chief investment officer at U.S. Bank
Wealth Management.

U.S. stock exchanges will be closed on Monday for the
Memorial Day holiday.

The Nasdaq index is down about 5% from its Feb. 19 record
high, helped in recent weeks by gains in Microsoft,
Amazon and other heavyweight companies seen coming out
of the economic downturn stronger than their smaller rivals.

The S&P 500 real estate sector index jumped 2.2%,
leading the 11 sectors, while energy dropped 0.7% as oil
prices sank about 3%.

A 1.9% drop in Chevron weighed on the Dow.

The Dow Jones Industrial Average fell 0.04% to end at
24,465.16 points, while the S&P 500 gained 0.24%, to
2,955.45. The Nasdaq Composite climbed 0.43% to

For the week, the Dow added 3.3%, the S&P 500 rose 3.2%, and
the Nasdaq climbed 3.4%.

Mixed earnings from retailers Walmart Inc, Best Buy
Co Inc and Home Depot Inc earlier this week
showed online shopping gaining traction with the lockdown
orders, a trend that could damage brick-and-mortar players
already feeling pressure from internet rivals.

On Friday, Chinese e-commerce giant Alibaba Group
reported better-than-expected quarterly profit, but its shares
tumbled almost 6%. Smaller rival Pinduoduo Inc’s U.S.-listed
shares surged over 14% after the company posted upbeat

Nvidia climbed 2.9% after forecasting strong
quarterly revenue as demand surges for its data center chips.

KKR & Co rose 1.1% after India’s Reliance Industries
said the private equity firm would buy a 2.3% stake in
its digital unit for 113.67 billion rupees ($1.50 billion).

Data analytics software maker Splunk Inc jumped
over 12% after it said it expects more demand for its cloud

Volume on U.S. exchanges was 8.75 billion shares, compared
to the 11.2 billion average for the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a
1.17-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favored advancers.

The S&P 500 posted six new 52-week highs and no new lows;
the Nasdaq Composite recorded 62 new highs and nine new lows.
(Reporting by Noel Randewich in Oakland, California; Additional
reporting by Ambar Warrick in Bengaluru and Pawel Goraj in
Gdansk; Editing by Leslie Adler)