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* Stocks set for weekly gains on recovery hopes
* Alibaba (NYSE: BABA ) slips despite upbeat earnings report
* Splunk jumps after forecasting higher cloud demand
* Futures mixed: Dow up 0.09%, S&P up 0.09%, Nasdaq off 0.10%
(Adds comment, details, updates prices)
By Ambar Warrick and Pawel Goraj
May 22 (Reuters) - U.S. stock indexes were set for a near-flat open on Friday as investors weighed hopes of more stimulus to revive an ailing economy against simmering Sino-U.S. trade tensions.
China on Friday unveiled details about its plan to impose a national security law in Hong Kong that could see mainland intelligence agencies set up bases in the global financial hub, raising fears of more pro-democracy protests. of the law on Thursday had drawn fire from President Donald Trump, toppling Wall Street's main indexes from multi-month highs that were hit on optimism around a revival in business activity with the easing of coronavirus-led lockdowns.
"Market sentiment is really vulnerable to expensive valuation at the moment," said Andrea Cicione, head of strategy at TS Lombard.
"After the shock of the COVID-19 lockdown, we have to go through a regular recession with high unemployment, low capex, low demand and that's not what's priced in at the moment."
A swathe of mixed retail earnings from Walmart (NYSE: WMT ) Inc WMT.N , Best Buy Co Inc (NYSE: BBY ) BBY.N and Home Depot Inc (NYSE: HD ) HD.N earlier in the week had shown online shopping gaining traction due to the stay-at-home orders.
On Friday, Chinese e-commerce behemoth Alibaba Group BABA.N reported a better-than-expected quarterly profit, but its shares slipped 1.6%. Smaller rival Pinduoduo Inc's U.S.-listed shares PDD.O gained 1.2% after its own upbeat quarterly earnings report. Packard Enterprise HPE.N fell 7.3% after missing second-quarter revenue and profit estimates, hit by global lockdowns since February. analytics software maker Splunk Inc SPLK.O rose 5.8% after saying it expects higher demand for its cloud services as people around the world take to working from home.
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