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Indexes: Dow down 0.21%, S&P 500 up 0.11%, Nasdaq up 0.28%

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Chip companies face revenue-sharing demand from US

government

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Intel ( INTC ) CEO to visit White House, report says

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TKO Group ( TKO ) up after $7.7 bln US rights deal for UFC

(Updates with early afternoon prices)

By Johann M Cherian and Sanchayaita Roy

Aug 11 (Reuters) - Wall Street's main indexes were

choppy on Monday as investors prepared for a busy week and chip

companies seesawed after agreeing to share a portion of revenue

from China sales with the U.S. under a trade policy shift from

the Trump administration.

Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ) reversed

premarket losses and were last up 0.2% and 2.6%, respectively,

in volatile trading. A U.S. official told Reuters the

semiconductor majors had agreed to give the United States

government 15% of revenue from sales of their advanced chips to

China.

Analysts said the levy could hit the chipmakers' margins and

set a precedent for Washington to tax critical U.S. exports,

potentially extending beyond semiconductors.

"A lot of people are not sure what to make of that

because this is the first time in history that it's ever

happened where an administration wants a percentage of the

profits from a publicly traded company," said Michael Matousek,

head trader at U.S. Global Investors Inc.

Enabling semiconductor sales to China was an integral

issue in the agreement Washington and Beijing signed earlier

this year, which expires on Tuesday. U.S. President Donald Trump

lauded

China's cooperation in talks at a White House news

conference earlier on Monday.

At 11:59 a.m. ET, the Dow Jones Industrial Average

fell 91.43 points, or 0.21%, to 44,084.19, the S&P 500

gained 6.87 points, or 0.11%, to 6,396.39, and the Nasdaq

Composite rose 60.17 points, or 0.28%, to 21,510.19.

Six of the 11 major S&P 500 sectors slipped, while

healthcare gained 0.4%, recovering some of the 5%

declines it had logged so far this year.

Traders took a step back after last week's rally helped the

S&P 500 and the Nasdaq log their strongest weekly

performance in more than a month. On Monday, the tech-heavy

Nasdaq was on track for its third consecutive record closing

high, if gains hold.

Investors expect that the recent shakeup at the U.S. Federal

Reserve and signs of labor market weakness could nudge the

central bank into adopting a dovish monetary policy stance later

this year, fueling much of the optimism.

July's consumer inflation report is due on Tuesday and

investors currently anticipate that the Fed will lower borrowing

costs by about 60 basis points by December, according to data

compiled by LSEG.

Citigroup and UBS Global Research became the latest

brokerages to raise their year-end targets for the benchmark S&P

500.

Micron Technology ( MU ) raised its forecast for

fourth-quarter revenue and adjusted profit, sending its shares

rising 3%.

Intel ( INTC ) was up 5.4% after a report said CEO Lip-Bu

Tan was expected to visit the White House. Trump had called for

his removal last week.

TKO jumped 7.5% after Paramount bought the

rights from the live entertainment company to exclusively

distribute UFC events for the next seven years in a deal valued

at around $7.7 billion.

Trump is expected to meet Russia's President Vladimir Putin

on Friday to try and negotiate an end to the war on Ukraine.

Declining issues outnumbered advancers by a 1-to-1 ratio on

the NYSE. Advancing issues outnumbered decliners by a 1.05-to-1

ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and 14 new lows,

while the Nasdaq Composite recorded 60 new highs and 82 new

lows.