US STOCKS-Futures retreat as U.S.-China tensions heat up over TikTok

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* Futures off: Dow 0.05%, S&P 0.19%, Nasdaq 0.20%

By Sagarika Jaisinghani and Medha Singh
Aug 4 (Reuters) - U.S. stock futures pulled back on Tuesday
as President Donald Trump's moves to force China-owned TikTok
into a sale of its U.S. operations drew a sharp rebuke from
Beijing, ratcheting up tensions as the world slides into a
pandemic-fuelled recession.
Friction between the world's top two economies took a back
seat in the first half of 2020 as the COVID-19 pandemic crushed
global growth, and an escalation now would hamper the recovery
of some exporters and importers and fan fears of a deeper
economic slump.
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.
The S&P 500 closed Monday within 3% of its all-time high,
powered over the past four months by a stimulus-led rebound and
a rally in tech-related stocks including Apple Inc AAPL.O ,
Netflix Inc NFLX.O and Amazon.com Inc AMZN.O .
At 7:02 a.m. ET, Dow e-minis 1YMcv1 were down 13 points,
or 0.05%, S&P 500 e-minis EScv1 were down 6.25 points, or
0.19% and Nasdaq 100 e-minis NQcv1 were down 22 points, or
0.2%.
Investors are now awaiting signs of progress in a fifth
major coronavirus-aid bill with Congress set to resume talks on
Tuesday to narrow gaping differences. In earnings-related news, insurer American International
Group Inc AIG.N fell 2.8% in premarket trading after posting a
56% fall in quarterly adjusted earnings. Take-Two Interactive Software Inc TTWO.O rose 4.7% 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 gained 3.8% ahead of
its results due after the closing bell.
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.