US STOCKS-Escalating Sino-U.S. tensions strain S&P 500, Dow

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* Trump says government should get a portion of TikTok sale
price
* China Daily says Beijing won't accept "theft"
* Congress to resume talks on coronavirus relief bill
* AIG, Spirit Aero, Ralph Lauren slide as results disappoint
* Indexes subdued: Dow down 0.07%, S&P up 0.01%, Nasdaq up
0.24%

(Updates to open)
By Sagarika Jaisinghani and Medha Singh
Aug 4 (Reuters) - The S&P 500 and Dow were subdued on
Tuesday as Sino-U.S. tensions escalated following President
Donald Trump's moves to force a sale of TikTok's U.S.
operations, with investors also disappointed by quarterly
results from Ralph Lauren and AIG.
Ralph Lauren Corp RL.N slumped 6.8% to its lowest since
mid-May after quarterly revenue plunged by nearly $1 billion due
to coronavirus-led store closures and a slowdown in global
demand for luxury goods. American International Group Inc AIG.N also led declines
on the S&P 500 with a 5.2% drop as its quarterly adjusted profit
slumped. Still, about seven of the 11 major S&P 500 sectors were
trading higher, with utilities .SPLRCU , energy .SPNY and
real estate .SPLRCR leading gains. A 1.4% rise in Amazon.com
Inc AMZN.O boosted both the S&P consumer discretionary index
.SPLRCI and the tech-heavy Nasdaq.
"The markets have been relatively narrow and benchmarks have
been fortunate that they had so much weightage in the big tech
companies," said Stephen Lee, portfolio manager at Logan Capital
Management in Newtown Square, Pennsylvania.
"Now we just have to see how we do outside of the
technology-focused companies."
A stimulus-led rebound and a rally in tech-related stocks
including Apple Inc AAPL.O , Netflix Inc NFLX.O and Amazon
has brought the S&P 500 to within 3% of its all-time high, and
all eyes now are on a fifth major coronavirus-aid bill with
Congress set to resume talks on Tuesday. Meanwhile, with Microsoft Corp MSFT.O looking to buy
short-video app TikTok's U.S. operations, Trump said on Monday
the U.S. government should get a "substantial portion" of any
deal price.
On Tuesday, state-backed newspaper China Daily said the
country will not accept the "theft" of the technology company.
Microsoft's shares fell 1.4% in early trading.
At 10:06 a.m. ET, the Dow Jones Industrial Average .DJI
was down 19.32 points, or 0.07%, at 26,645.08, while the S&P 500
.SPX was up just 0.28 points, or 0.01%, at 3,294.89.
The Nasdaq Composite .IXIC was up 25.81 points, or 0.24%,
at 10,928.61.
Take-Two Interactive Software Inc TTWO.O rose 3.5% as it
raised its annual adjusted sales forecast on demand for its
videogame franchises "Grand Theft Auto" and "NBA 2K".
Rival Activision Blizzard Inc ATVI.O inched lower ahead of
its results due after the closing bell.
Spirit AeroSystems SPR.N dropped 5.3% on posting a
bigger-than-expected quarterly loss. About 83% of the 322 companies in the S&P 500 that have
reported quarterly results so far have beaten estimates for
earnings, according to IBES Refinitiv data.
Walt Disney Co DIS.N , Fox Corp FOXA.O and Wynn Resorts
Ltd WYNN.O are also expected to report quarterly results later
in the day.
Advancing issues nearly matched decliners both on the NYSE
and the Nasdaq.
The S&P index recorded 11 new 52-week highs and no new low,
while the Nasdaq recorded 76 new highs and four new lows.