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* Industrial rise on planned U.S.-China trade talks
* Tech and FAANG stocks pull back, weighing on markets
* Nike hits record high on brokerage upgrades
* Dow up 0.33 pct, S&P up 0.14 pct, Nasdaq down 0.14 pct (Changes comment, updates prices)
By Shreyashi Sanyal
Aug 20 (Reuters) - The S&P 500 and Dow Industrials rose on Monday on optimism around the upcoming Sino-U.S. trade talks, but the Nasdaq fell as technology stocks retreated.
The planned lower-level trade talks between the United States and China later this week boosted optimism in some sections of the market, with the trade-sensitive industrial sector up 0.55 percent. Boeing rose 1 percent.
Still, the optimism was not widespread ahead of U.S. tariffs on $16 billion of Chinese goods due to take effect this week, along with Beijing's retaliatory tariffs on an equal amount of U.S. goods.
"Markets are reacting mostly to trade talks, although the Nasdaq seems to be off because the tech sector has seen a sell-off for the past couple weeks," said Paul Nolte, portfolio manager at Kingsview Asset Management, Chicago.
The tech sector dropped 0.41 percent, weighing on the market. Apple, Microsoft and Facebook were down about 1 percent.
All of the so-called FAANG stocks were lower, except Netflix . A steep drop in heavyweight Chinese internet stocks and recent weakness in the FAANG group have fanned worries that a key driver of Wall Street's near-decade long rally may be low on fuel.
With the earnings season winding down, investors are turning their attention to central banks.
Minutes of the Federal Reserve's August policy meeting are due on Wednesday and should show policy makers are upbeat on the economy and committed to further interest rate increases.
Fed Chair Jerome Powell and other central bankers meet at Jackson Hole, Wyoming, from Friday to discuss stubbornly low inflation, slow wage growth and lethargic productivity gains.
At 11:30 a.m. EDT the Dow Jones Industrial Average was up 84.27 points, or 0.33 percent, at 25,753.59, the S&P 500 was up 4.02 points, or 0.14 percent, at 2,854.15 and the Nasdaq Composite was down 11.05 points, or 0.14 percent, at 7,805.28.
Nine of the 11 major S&P sectors were higher, led by the energy index's 0.66 percent gain.
Nike rose as much as 2.8 percent to a record high after two brokerages raised their ratings on the stock.
Intel dropped 1.6 percent after brokerage Cowen & Co said the chipmaker's new security bugs were potentially a big deal for public clouds.
SodaStream's U.S.-listed shares leaped 9.7 percent after PepsiCo said it would buy the Israel-based household drink-machine maker for $3.2 billion. PepsiCo's shares rose 0 percent.
Advancing issues outnumbered decliners by a 2.14-to-1 ratio on the NYSE and a 1.26-to-1 ratio on the Nasdaq. The S&P index recorded 46 new 52-week highs and no new lows, while the Nasdaq recorded 92 new highs and 47 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)