US STOCKS-Wall Street retreats ahead of Trump's response on Hong Kong

Reuters

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    * Salesforce falls after slashing profit, revenue outlook
    * Nordstrom dives after reporting quarterly loss
    * Indexes down: Dow 1.06%, S&P 0.71%, Nasdaq 0.12%

 (Updates to early afternoon)
    By Medha Singh
    May 29 (Reuters) - Wall Street's main indexes retreated on
Friday as investors were cautious ahead of a U.S. response to
China's national security law on Hong Kong that threatens to
take some shine off another month of strong gains for the stock
market.
    President Donald Trump, who has warned of a tough response
to China's move, is expected to hold a news conference at 2 p.m.
ET (1800 GMT). urn:newsml:reuters.com:*:nL4N2DB0H6 urn:newsml:reuters.com:*:nL1N2DB0U2
    "It is a pullback in front of what is likely to be pretty
bipartisan and hawkish remarks from the president," said Bob
Shea, chief executive officer of TrimTabs Asset Management in
New York.
    "I'm not surprised and it's happening at a time when markets
are short term over bought, meaning due for some corrective
action."
    Despite worsening relations between the world's two largest
economies amid the coronavirus crisis, expectations of a quick
post-pandemic recovery in the economy have driven the S&P 500
 .SPX  about 37% higher from its March lows as it heads for a
second straight month of gains.
    The benchmark index is now about 11% below its Feb. 19
record high.
    Federal Reserve Chair Jerome Powell, while speaking in a
webcast organized by Princeton University on Friday, reiterated
the U.S. central bank's promise to use its tools to shore up the
economy amid the coronavirus pandemic. nL1N2DB1CB]
    Financials  .SPSY  were the biggest drag on the benchmark
index after posting their best performance among all major S&P
sectors this week. All the top sector indexes were also in the
red.
    At 12:46 p.m. ET, the Dow Jones Industrial Average  .DJI 
was down 269.88 points, or 1.06%, at 25,130.76, the S&P 500
 .SPX  was down 21.44 points, or 0.71%, at 3,008.29. The Nasdaq
Composite  .IXIC  was down 11.55 points, or 0.12%, at 9,357.44.
    A day after Trump signed the order threatening social media
firms with new regulations over free speech, Twitter Inc
 TWTR.N  hid a tweet from the President and accused him of
breaking its rules by "glorifying violence".  urn:newsml:reuters.com:*:nL1N2DB0FR
    Twitter shares were down 3.3% while Facebook Inc  FB.O  fell
0.4%.
    Upscale department store chain Nordstrom Inc  JWN.N  slumped
11.3% after it reported a near 40% fall in quarterly sales due
to pandemic-led store closures.  urn:newsml:reuters.com:*:nL4N2DA45R
    Salesforce.com Inc  CRM.N  slipped 5.2% as the cloud-based
business software maker cut its annual revenue and profit
forecasts.  urn:newsml:reuters.com:*:nL4N2DA45W
    Declining issues outnumbered advancers for a near 2-to-1
ratio on the NYSE and ratio on the Nasdaq.
    The S&P index recorded nine new 52-week highs and no new
lows, while the Nasdaq recorded 38 new highs and 12 new lows.

 (Reporting by Medha Singh and Devik Jain in Bengaluru; Editing
by Saumyadeb Chakrabarty and Anil D'Silva)
 ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,
outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))

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