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* Alibaba slips despite upbeat earnings report

* KKR rises on deal with India’s Reliance Industries

* Indexes: Dow -0.11%, S&P 500 +0.14%, Nasdaq +0.36%
(Updates with afternoon trading)

By Noel Randewich

May 22 (Reuters) – Wall Street was 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.

The rhetoric knocked Wall Street off multi-month highs,
although the main indexes were still set to add over 2% for the
week, fueled by optimism about an eventual coronavirus vaccine
and the easing of virus-related curbs.

“The biggest thing out there today is the Hong Kong/China
saber rattling,” said Eric Freedman, chief investment officer at
U.S. Bank Wealth Management. “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.”

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.

At 2:17 p.m. ET, the Dow Jones Industrial Average was
down 0.11% at 24,446.31 points, while the S&P 500 gained
0.14% to 2,952.58. The Nasdaq Composite added 0.36% to
9,318.50.

Six of the 11 major S&P 500 sector indexes were lower, with
energy dropping more than 1% as oil prices sank 5%.

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 11% after the company posted upbeat
results.

Nvidia rose 2.8% after forecasting strong quarterly
revenue as demand surges for its data center chips.

KKR & Co rose 0.9% 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 12%
after it said it expects more demand for its cloud services.

Declining issues outnumbered advancing ones on the NYSE by a
1.11-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.

The S&P 500 posted five new 52-week highs and no new lows;
the Nasdaq Composite recorded 52 new highs and eight 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)