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US STOCKS-Wall Street dips on lack of fresh update on trade talks

By Shreyashi Sanyal

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* Dollar General gains after raising FY profit forecast

* Nike rises on report of Goldman Sachs upgrade

* Kroger drops on quarterly sales, profit miss

* Indexes down: Dow 0.20%, S&P 500 0.18%, Nasdaq 0.19% (Adds comments, updates to open)

By Shreyashi Sanyal

Dec 5 (Reuters) - Wall Street's main indexes dropped on Thursday, as investors stayed away from making riskier bets owing to a lack of new developments in U.S.-China trade talks.

The three main stock indexes opened higher, extending gains from the previous session, but lost steam in the first hour of trading.

"There is no new news on the trade war and it's mostly that," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

"So unless we get a positive or negative story to push the market one way or the other, we might as well be trading in this range for a while."

Wall Street's main indexes snapped a three-day losing streak in the previous session as headlines around trade suggested the world's two largest economies were closer to agreeing how many tariffs would be rolled back in a "phase one" trade deal.

However, if no agreement is reached soon, more tariffs on Chinese goods will kick in from Dec. 15.

Seven of the 11 major S&P 500 sectors were trading in the red, while shares of tariff-sensitive chip companies eked out gains, with the Philadelphia Semiconductor index up 0.3%.

At 10:18 a.m. ET the Dow Jones Industrial Average was down 55.23 points, or 0.20%, at 27,594.55, the S&P 500 was down 5.45 points, or 0.18%, at 3,107.31 and the Nasdaq Composite was down 15.87 points, or 0.19%, at 8,550.81.

Investors also seemed to shrug off Wednesday's lackluster readings on domestic services sector activity and private payrolls growth as they await the Labor Department's non-farm payrolls data due Friday.

Dollar General Corp gained 1% after the discount store chain raised its full-year profit forecast.

Nike Inc shares climbed 1.5% after a report said Goldman Sachs upgraded the sportswear maker's stock to "buy" from "neutral".

Kroger Co dropped 3% as it missed Wall Street estimates for quarterly sales and profit, hurt by stiff competition from industry stalwarts Walmart Inc and Amazon.com Inc.

Advancing issues outnumbered decliners by a 1.05-to-1 ratio on the NYSE and by a 1.01-to-1 ratio on the Nasdaq.

The S&P index recorded seven new 52-week highs and two new lows, while the Nasdaq recorded 35 new highs and 32 new lows. (Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)