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

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* Salesforce falls after slashing profit, revenue outlook
* Trump expected to hold news conference later in the day
* Indexes fall: Dow 0.73%, S&P 0.49%, Nasdaq 0.06%

(Adds quote, details; updates prices)
By Medha Singh
May 29 (Reuters) - Wall Street's main indexes fell on Friday
as investors were on edge ahead of a U.S. response to China's
national security law on Hong Kong that threatens to take the
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 make an announcement later in
the day. Adding to the downbeat mood, economic data showed U.S.
consumer spending suffered another month of record decline in
April, buttressing expectations that the economy could contract
in the second quarter at its steepest pace since the Great
Depression. "It is a pullback in front of what is likely to be pretty
bipartisan, 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, expectations of a quick post-pandemic economic
recovery have driven the S&P 500 .SPX about 37% higher from
its March lows as it heads for its second straight month of
gains.
The benchmark index is now about 11% below its Feb. 19
record high.
Financials .SPSY were the biggest drag on the benchmark
index after posting their best performance among all major S&P
sectors this week. All major sector indexes were also in the
red.
At 11:16 a.m. ET, the Dow Jones Industrial Average .DJI
was down 184.48 points, or 0.73%, at 25,216.16, the S&P 500
.SPX was down 14.97 points, or 0.49%, at 3,014.76. The Nasdaq
Composite .IXIC was down 5.41 points, or 0.06%, at 9,363.58.
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". Twitter shares were down 2.3% while Facebook Inc FB.O fell
0.4%.
Focus is also on Federal Reserve Chair Jerome Powell, who is
speaking in a public webcast organized by Princeton University.
Salesforce.com Inc CRM.N slipped 4.2% as the cloud-based
business software maker cut its annual revenue and profit
forecasts. Declining issues outnumbered advancers for a 1.97-to-1 ratio
on the NYSE and for a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new
lows, while the Nasdaq recorded 30 new highs and 11 new lows.