US STOCKS-S&P 500, Dow slip on fear of new infection wave

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* Marriott drops as profit misses lowered estimates
* Cardinal Heath surges as pandemic drives sales
* Indexes: Dow off 1.03%, S&P down 0.68%, Nasdaq flat

(Updates to open)
By Medha Singh
May 11 (Reuters) - The S&P 500 and Dow Jones indexes
retreated on Monday after last week's rally, as investors
worried about a second wave of coronavirus infections with the
reopening of several economies.
Germany and South Korea reported a surge in new COVID-19
cases on Sunday, in an ominous sign for all countries beginning
to lift virus lockdowns.
"That's going to put water on the fire today," said Gerald
Sparrow, portfolio manager of the Sparrow Growth Fund in St.
Louis, Missouri.
"(Still), the difference now than four months ago is that
governments and health organizations have more specific plans.
The big tipping point is going to be if we can't come up with a
medicine to treat the virus."
Travel and hospitality stocks, which have been battered due
to a collapse in global travel, slipped again on Monday.
The S&P 1500 airlines index .SPCOMAIR declined 5.4%, while
cruise operators Carnival Corp CCL.N , Norwegian Cruise Line
Holdings Ltd NCLH.N fell 3.3% and 5.9%, respectively.
Marriott International Inc MAR.O shed 5.9% after the hotel
operator's quarterly profit fell short of already drastically
lowered expectations as bookings plunged. The Nasdaq .IXIC , however, edged higher as gains for
tech-related stocks helped it build on a rally last week where
it recovered all its 2020 losses on hopes of a pickup in
business activity.
The tech-heavy index is now just 7% below its February
record high, but analysts have warned of another selloff as
macroeconomic data gets worse, foreshadowing a deep and lasting
global recession.
"We think it's likely a stretch for investors to chase the
move much higher from here," said Eoin Murray, head of
investment at Federated Hermes.
After financial markets began pricing in negative U.S.
interest rates for the first time ever last week, all eyes will
be on Federal Reserve Chair Jerome Powell's outlook on the
economy at a webcast event on Wednesday.
Ten of the 11 major S&P sectors were lower, with a 2.4%
decline in financials .SPSY weighing the most. Financials tend
to lag when economic outlook darkens.
At 10:17 a.m. ET, the Dow Jones Industrial Average .DJI
was down 249.54 points, or 1.03%, at 24,081.78, the S&P 500
.SPX was down 19.98 points, or 0.68%, at 2,909.82.
The Nasdaq Composite .IXIC was up 0.17 points at 9,121.49.
Drug distributor Cardinal Health Inc CAH.N jumped 6.9% as
the pandemic drove a surge in third-quarter sales, which topped
market estimates. Athletic apparel maker Under Armour Inc UA.N UAA.N
slumped 11.6% after reporting its quarterly revenue fell by 23%,
while General Mills Inc GIS.N rose 1.5% after it said it
expects to surpass its own expectations for fiscal 2020 organic
sales. Declining issues outnumbered advancers more than 3-to-1 on
the NYSE and matched advancers on the Nasdaq.
The S&P index recorded nine new 52-week highs and one new
low while the Nasdaq recorded 56 new highs and four new lows.