US STOCKS-Wall St jumps on U.S.-China trade deal optimism

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* S&P 500, Dow set to snap three-week losing streak
* Eyes on Trump meeting with Chinese vice premier
* Indexes up: Dow 1.8%, S&P 500 1.7%, Nasdaq 2%

(Updates to late afternoon)
By Caroline Valetkevitch
NEW YORK, Oct 11 (Reuters) - U.S. stocks rose sharply on
Friday as hopes grew that the talks between President Donald
Trump and Chinese Vice Premier Liu He would culminate in a
partial trade deal and delay planned U.S. tariff increases.
Cyclicals were among the day's best-performing groups, with
industrials .SPLRCI and others up more than 2% ahead of the
third-quarter earnings season set to begin next week. Also,
shares of Apple Inc AAPL.O hit a record high.
The Trump-Liu meeting was set for this afternoon in the
White House. Top-level discussions between the two countries
concluded their second day on Friday. "There's marginal progress with trade, it looks like," Keith
Lerner, chief market strategist at SunTrust Advisory Services in
Atlanta.
That, along with other factors, is boosting stocks, he said.
"It reinforces our view that the path of least resistance is
forward for the market."
The S&P 500 and Dow Jones indexes looked set to break a
three-week losing streak on optimism that the world's top two
economies could cool off their row before more U.S. tariffs kick
in next week.
The Dow Jones Industrial Average .DJI rose 476.31 points,
or 1.8%, to 26,972.98, the S&P 500 .SPX gained 51.14 points,
or 1.74%, to 2,989.27 and the Nasdaq Composite .IXIC added
158.41 points, or 1.99%, to 8,109.20.
The S&P 500 bank index .SPXBK jumped on expectations that
strength in mortgage banking and cheap valuations could provide
support to some of the biggest U.S. lenders. However, analysts expect S&P 500 earnings dropped 3.2%
year-on-year in the third quarter, which would mark the first
decline since 2016, according to IBES data from Refinitiv.
Bets for another interest rate cut by the Federal Reserve
fell after data showed a rise in consumer sentiment for the
month of October. Apple rose as Wedbush raised its price target, citing
confidence in the company's new video streaming service.
The industrial index was boosted by a surge in shares of
Fastenal Co FAST.O after the industrial distributor beat
quarterly profit expectations. Advancing issues outnumbered declining ones on the NYSE by a
3.86-to-1 ratio.
The S&P 500 posted 26 new 52-week highs and no new lows; the
Nasdaq Composite recorded 43 new highs and 49 new lows.