US STOCKS-Banks boost Wall Street with G20 in focus

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* Trump-Xi meeting at G20 eyed
* Banks rise on clearing Fed's final stress test
* Apple dips as design chief to leave
* Moderate consumer spending, inflation support rate cut
* Indexes up: Dow 0.36%, S&P 0.47%, Nasdaq 0.47%

(Updates to early afternoon)
By Shreyashi Sanyal
June 28 (Reuters) - U.S. stocks rose on Friday, as big banks
gained after clearing the Federal Reserve's stress test, while
investors kept a watch on the G20 summit where a meeting between
Presidents Donald Trump and Xi Jinping could lay the groundwork
to resolve their trade dispute.
Trump said he hoped for productive talks with the Chinese
president, but said he had not made any promises about a
reprieve from escalating tariffs. The two leaders are scheduled
to meet on the sidelines of the G20 summit this weekend in
Japan.
"What investors expect are good talks, no implementation of
tariffs right away and a continuation in negotiations. Which is
also the most likely outcome from G20," said Randy Frederick,
vice president of trading and derivatives for Charles Schwab in
Austin, Texas.
"There are still hopes that things won't be worse after the
weekend."
The uncertainty caused by conflicting reports on a potential
trade truce stalled this month's rally, with the S&P 500 index
.SPX on pace to post its first weekly loss in June.
Still, the bellwether index is up nearly 7% for the month,
putting it on track to clock its best six-month run since March
2012. Global stocks, meanwhile, recorded their best first-half
of the year ever.
Lifting Wall Street were gains in financials .SPSY , up
1.39%, the most among the 11 major S&P sectors, closely followed
by a 0.9% rise in trade-sensitive industrials .SPLRCI .
Banks stocks .SPXBK jumped 2.41% after the Fed on Thursday
approved capital plans of 16 banks, including JPMorgan Chase &
Co JPM.N , Bank of America Corp BAC.N and Citigroup Inc
C.N , in its final stress test hurdle. At 12:31 p.m. ET the Dow Jones Industrial Average .DJI was
up 94.21 points, or 0.36%, at 26,620.79 and the S&P 500 .SPX
was up 13.78 points, or 0.47%, at 2,938.70.
The Nasdaq Composite .IXIC was up 37.26 points, or 0.47%,
at 8,005.02.
Apple Inc AAPL.O dipped 0.3% after the iPhone maker said
Jony Ive, a close creative collaborator with the company's
co-founder Steve Jobs, will leave later this year. Constellation Brands Inc STZ.N jumped 4.5% after the
Corona beer maker reported quarterly results above analysts'
estimates.
Giving the Fed more ammunition to cut interest rates next
month was data that showed consumer spending increased
moderately in May and prices rose slightly, pointing to slowing
economic growth and benign inflation pressures. Advancing issues outnumbered decliners by a 3.10-to-1 ratio
on the NYSE and by a 2.81-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and no new
low, while the Nasdaq recorded 59 new highs and 30 new lows.