(For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window.)
* Alibaba (NYSE: BABA ) 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. 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 MSFT.O , Amazon AMZN.O and other heavyweight companies seen coming out of the economic downturn stronger than their smaller rivals.
Six of the 11 major S&P 500 sector indexes were lower, with energy .SPNY dropping more than 1% as oil prices sank 5%. O/R
Mixed earnings from retailers Walmart (NYSE: WMT ) Inc WMT.N , Best Buy Co Inc (NYSE: BBY ) BBY.N and Home Depot Inc (NYSE: HD ) HD.N 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 BABA.N reported better-than-expected quarterly profit, but its shares tumbled almost 6%. Smaller rival Pinduoduo Inc's U.S.-listed shares PDD.O surged 11% after the company posted upbeat results. NVDA.O rose 2.8% after forecasting strong quarterly revenue as demand surges for its data center chips. & Co KKR.N rose 0.9% after India's Reliance Industries RELI.NS said the private equity firm would buy a 2.3% stake in its digital unit for 113.67 billion rupees ($1.50 billion). analytics software maker Splunk Inc SPLK.O jumped 12% after it said it expects more demand for its cloud services. 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.
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