US STOCKS-Wall St drifts higher with G20 summit underway

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* Trump-Xi meeting at G20 in focus
* Banks rise on clearing Fed's final stress test
* U.S. consumer spending rises in May; inflation muted
* Apple drops, pressures Dow, Nasdaq
* Indexes up: Dow 0.15%, S&P 0.23%, Nasdaq 0.16%

(Updates prices, comments)
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 benchmark index is up 6.5% for the month, putting
it on track to clock its best six-month performance since March
2012. Global stocks, meanwhile, recorded their best first-half
of the year ever.
Lifting Wall Street were gains in financials .SPSY , up
1.07%, the most among the 11 major S&P sectors.
Banks stocks .SPXBK jumped 2% 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 10:53 a.m. ET the Dow Jones Industrial Average .DJI
was up 39.47 points, or 0.15%, at 26,566.05 and the S&P 500
.SPX was up 6.66 points, or 0.23%, at 2,931.58.
The Nasdaq Composite .IXIC was up 12.36 points, or 0.16%,
at 7,980.12.
Apple Inc AAPL.O dropped 0.8%, pressuring the tech-heavy
Nasdaq and the blue-chip Dow, 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%, the most on the
S&P, after the Corona beer maker reported quarterly results
above analysts' estimates.
Giving the Fed 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 2.97-to-1 ratio
on the NYSE and by a 2.70-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and no new
low, while the Nasdaq recorded 51 new highs and 24 new lows.