US STOCKS-U.S.-China tensions pull Wall Street lower

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* TJX jumps on strong sales post lockdown
* Energy sector index drops
* Best Buy falls as same-store sales slide
* Indexes: Dow -0.11%, S&P 500 -0.42%, Nasdaq -0.47%

(Adds details; updates prices)
By Noel Randewich
May 21 (Reuters) - Wall Street receded on Thursday, a day
after hitting two-month highs, on a fresh wave of China-U.S.
tensions, raising doubts about the trade deal reached early this
year between the world's two largest economies.
President Donald Trump said the United States would react
strongly if China imposes national security laws for Hong Kong
in response to last year's often violent pro-democracy protests.
Earlier, Secretary of State Mike Pompeo criticized Beijing's
handling of the coronavirus outbreak, while a Chinese official
said the country will not flinch from any escalation in
tensions. The recent souring relations between the world's two largest
economies over the coronavirus pandemic has raised doubts about
the Phase 1 trade deal signed earlier this year, interrupting a
rally on the U.S. stock market.
"It seems like China is going to be used as a punching bag
for the upcoming elections," said Bob Shea, CEO and co-chief
investment officer at TrimTabs Asset Management in New York.
"The White House has resolved to itself that it is more
effective to swing at China than to salvage what was going to
already be a watered-down Phase 1 trade deal. You don't score
any points for that," Shea said.
The S&P 500 has surged over 30% from its March low, but
remains down more than 12% from its February record high.
The Nasdaq is less than 5% below its February record high,
fueled in recent week by gains in Microsoft MSFT.O , Amazon.com
AMZN.O and other technology heavyweights that many investors
expect to emerge from the crisis stronger than smaller rivals.
At 2:22 p.m. ET, the Dow Jones Industrial Average .DJI was
down 0.11% at 24,547.99 points, while the S&P 500 .SPX lost
0.42% to 2,959.2. The Nasdaq Composite .IXIC dropped 0.47% to
9,331.64.
Ten of the 11 major S&P sector indexes were lower. Energy
.SPNY , down 1%, fell the most.
Best Buy Co Inc BBY.N fell 3.6% after the electronics
retailer reported a 5.3% drop in quarterly same-store sales due
to the virus. L Brands Inc LB.N surged 20% despite posting
worse-than-expected quarterly results but said it will scale
down its struggling Victoria's Secret unit
Discount chain owner TJX TJX.N jumped 6.8% to a more than
two-month high after it flagged strong sales at its stores that
have reopened after lockdowns. Advancing issues outnumbered declining ones on the NYSE by a
1.11-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored decliners.
The S&P 500 posted five new 52-week highs and no new lows;
the Nasdaq Composite recorded 51 new highs and four new lows.