US STOCKS-Wall St drops on Trump's China trade comments, economic worries

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* Cisco rises as profit, revenue top estimates
* Wall Street's fear gauge near 10-day high
* Norwegian Cruise Line slides as it swings to a loss
* Weekly jobless claims worse than expected
* Indexes fall: Dow 1.96%, S&P 1.88%, Nasdaq 1.70%

(Updates to open)
By Medha Singh and Ambar Warrick
May 14 (Reuters) - Wall Street's main indexes fell on
Thursday, extending declines for the third straight session, as
comments from President Donald Trump renewed worries over
Sino-U.S. trade relations and added to concerns of a prolonged
economic downturn.
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.
Wall Street's fear gauge, the CBOE volatility index .VIX
rose for the third straight day, hovering near a 10-day high.
Trade tensions are piling pressure on equities, Paul Nolte,
portfolio manager at Kingsview Asset Management in Chicago said.
"They are certainly kicking the markets when we're trying to
recover from the virus' economic hit."
The three main stock indexes were headed for their worst
week since mid-March as hopes of a quick recovery were doused by
Federal Reserve Chairman Jerome Powell's somber outlook on the
economy and leading U.S. infectious disease expert Anthony
Fauci's warning that the virus was not yet under control.
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. However, this marked the sixth straight weekly drop in
jobless claims, since topping 6 million in the final week of
March.
The focus now turns to retail sales data on Friday that will
reflect the impact of stay-at-home orders on the U.S. consumer
in April.
At 10:04 a.m. ET, the Dow Jones Industrial Average .DJI
was down 456.65 points, or 1.96%, at 22,791.32, the S&P 500
.SPX was down 53.10 points, or 1.88%, at 2,766.90. The Nasdaq
Composite .IXIC was down 151.00 points, or 1.70%, at 8,712.17.
All major S&P sectors were in the red on Thursday with
energy .SPNY , real estate .SPLRCR and industrial .SPLRCI
posting the sharpest declines.
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 4.3%.
Norwegian Cruise Line Holdings Ltd NCLH.N shed 9.2% as it
swung to a quarterly loss due to a virtual standstill in global
travel earlier this year. Bucking the trend, Cisco Systems Inc CSCO.O rose 4.5%
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 11.87-to-1
ratio on the NYSE and a 8.22-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 16 new
lows, while the Nasdaq recorded nine new highs and 97 new lows.