US STOCKS-Wall Street slips on rising U.S.-China tensions, recovery worries

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window)
* TJX jumps after flagging strong sales post lockdown
* U.S. Secretary of State Pompeo takes new jab at Beijing
* Indexes slip: Dow 0.23%, S&P 0.50%, Nasdaq 0.54%

(Adds quote, details; updates prices)
By Ambar Warrick and Medha Singh
May 21 (Reuters) - Wall Street's main indexes eased on
Thursday from more than two-month highs hit in the previous
session, as growing Sino-U.S. tensions and concerns about a
rebound from a coronavirus-led economic slump hit sentiment.
The three indexes have risen in four of the past five
sessions, but have lost steam amid mixed headlines on progress
in developing a coronavirus vaccine and a return of U.S.-China
trade tensions to the forefront.
U.S. Secretary of State Mike Pompeo on Wednesday again
criticized Beijing's handling of the outbreak and a Chinese
official said the country will not flinch from any escalation in
tensions. The souring relations have made investors nervous about the
Phase 1 trade deal signed between the world's two largest
economies earlier this year.
"There are a lot of things that the markets are trying to
work their way through - the virus, the vaccine and on top of
it, now trade issues," said Paul Nolte, portfolio manager at
Kingsview Asset Management in Chicago.
Analysts said investors were watching for the S&P 500 to
cross 3,000 points, a key psychological level that could bolster
risk appetite. The benchmark index was also nearing its 100-day
and 200-day moving averages, technical indicators that have
acted as resistance levels.
"We're just capped in a trading range here, and we've
probably reached that high level, and that's why risk is off
today," said Peter Cardillo, chief market economist at Spartan
Capital Securities in New York.
At 12:20 p.m. ET, the Dow Jones Industrial Average .DJI
was down 56.38 points, or 0.23%, at 24,519.52, the S&P 500
.SPX was down 14.93 points, or 0.50%, at 2,956.68. The Nasdaq
Composite .IXIC was down 50.20 points, or 0.54%, at 9,325.58.
Wall Street's fear gauge .VIX touched 30 points during the
session.
Best Buy Co Inc BBY.N fell 4.8% as the electronics
retailer reported a 5.3% drop in quarterly same-store sales due
to the virus, while L Brands Inc LB.N surged 16.7% despite
posting worse-than-expected quarterly results. Discount chain TJX .TJX jumped 6.2% to a more than
two-month high after it flagged strong sales at its stores that
had reopened after lockdowns. Smaller rival Ross Stores Inc ROST.O jumped 5.6%.
Advancing issues outnumbered decliners by a 1.00-to-1 ratio
on the NYSE. Declining issues outnumbered advancers for a
1.22-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and no new
lows, while the Nasdaq recorded 42 new highs and three new lows.