US STOCKS-Wall St drops on trade war fears, economic worries

* Cisco rises as profit, revenue top estimates
* Wall Street's fear gauge near 10-day high
* Banks rally as Wells Fargo bounces off 11-year low
* Weekly jobless claims worse than expected
* Indexes down: Dow 0.24%, S&P 0.52%, Nasdaq 0.80%

(Adds comment, details; Updates prices)
By Medha Singh and Ambar Warrick
May 14 (Reuters) - Wall Street's main indexes were lower in
choppy trading on Thursday, as renewed worries about Sino-U.S.
trade relations added to fears of an extended economic downturn
due to the virus outbreak.
President Donald Trump said he was very disappointed with
China over its failure to contain the novel coronavirus, saying
the worldwide pandemic cast a pall over his U.S.-China trade
deal. This further rattled markets after Federal Reserve Chairman
Jerome Powell's somber outlook on the economy and U.S.
infectious disease expert Anthony Fauci's warning that the virus
was not yet under control.
"Markets are repricing the risk around economic reopening
and the eventual economic normalization. There's an
understanding that the timetable may be longer than we initially
thought," said Yousef Abbasi, global market strategist at INTL
FCStone.
Wall Street's fear gauge, the CBOE volatility index .VIX
rose for the third straight day, hovering near a 10-day high.
The three main stock indexes were headed for a third straight
day of losses.
Market participants said a rally in bank stocks .SPXBK
helped Wall Street indexes come off intraday lows. Wells Fargo &
Co WFC.N surged 6.1% as it bounced back from 11-year lows.
"Wells Fargo has brought the entire market with it," said
Dennis Dick, proprietary trader at Bright Trading LLC in Las
Vegas. "I think they are oversold. The markets like that the
banks are showing some life."
Economic readings continued to reflect the pain caused by
the pandemic, as data showed 2.98 million Americans filed for
state unemployment benefits last week, higher than economists'
estimates. The focus now turns to retail sales data on Friday that will
show the impact of stay-at-home orders on the U.S. consumer in
April.
At 11:55 a.m. ET, the Dow Jones Industrial Average .DJI
was down 55.31 points, or 0.24%, at 23,192.66, the S&P 500
.SPX was down 14.69 points, or 0.52%, at 2,805.31. The Nasdaq
Composite .IXIC was down 70.98 points, or 0.80%, at 8,792.19.
Beaten-down travel stocks tumbled again with the S&P 1500
airlines index .SPCOMAIR down 8% and hotel operator Marriott
International Inc MAR.O off 1.2%.
Norwegian Cruise Line Holdings Ltd NCLH.N shed 1.6% as it
swung to a quarterly loss. Cisco Systems Inc CSCO.O rose 5.0% after beating quarterly
revenue and profit estimates, as lockdowns globally boosted
demand for its remote-work tools and networking equipment.
Declining issues outnumbered advancers for a 2.85-to-1 ratio
on the NYSE and a 2.75-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 16 new
lows, while the Nasdaq recorded 12 new highs and 108 new lows.