US STOCKS-Wall St rallies as investors eye G20 summit

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* Kudlow: U.S. may move ahead on new China tariffs after G20
* Xi to present Trump with terms for trade war resolution
-WSJ
* Tariff-vulnerable chipmakers advance
* Boeing falls as FAA cites new flaw in 737 MAX jets
* Indexes up: Dow 0.22%, S&P 0.52%, Nasdaq 0.76%

(Updates to late afternoon, changes dateline, byline)
By Stephen Culp
NEW YORK, June 27 (Reuters) - Wall Street gained ground in a
broad-based rally on Thursday as market participants looked to
the G20 summit this weekend for signs of progress in the
long-running U.S.-China trade dispute, which has agitated
markets for months.
All three major U.S. stock indexes were up, with the
benchmark S&P 500 set to snap its four-day losing streak,
inching within 1 percent of its all-time high, reached a week
ago today.
News that the world's two largest economies have agreed to a
tentative truce in their ongoing trade war, according to the
China Morning Post, initially fueled investor optimism.
But that optimism was tempered by a story in the Wall Street
Journal that Chinese President Xi Jinping will present President
Donald Trump with a set of conditions the United States must
meet before Beijing will settle the trade dispute. were muddied further when White House economic
adviser Larry Kudlow said the United States may move ahead with
further tariffs on Chinese goods after the two leaders meet this
weekend at the Group of 20 summit in Japan. Trump
and Xi are expected to discuss a way forward with respect to
tariffs and other issues when they meet.
"There seem to be a lot of cross-currents in language
depending on who's talking," said Chuck Carlson, chief
executive at Horizon Investment Services in Hammond, Indiana.
"The market seems to be discounting that positive is going to
happen" at the G20 summit.
"The market has also been discounting that the Fed is going
to cut (interest) rates," Carlson added. "If the trade talks
fall apart a part a rate cut is a fait accompli."
The Dow Jones Industrial Average .DJI rose 58.95 points,
or 0.22%, to 26,595.77, the S&P 500 .SPX gained 15.2 points,
or 0.52%, to 2,928.98 and the Nasdaq Composite .IXIC added
60.48 points, or 0.76%, to 7,970.46.
Of the 11 major sectors in the S&P 500, all but energy
stocks .SPNY were higher.
Chipmakers, whose revenue exposure to China makes them
vulnerable to tariffs, were up. The Philadelphia Semiconductor
index .SOX rose 1.4%.
"Chipmakers are a proxy for trade optimism," Carlson said.
"They have become the trade du jour for traders betting for or
against a trade deal" between the United States and China.
Ford Motor Co F.N advanced 3.1% after the automaker
announced it would cut 12,000 jobs in its troubled Ford Europe
segment. Boeing Co BA.N was the heaviest drag on the Dow, dropping
1.9% following a Reuters report on Wednesday that the U.S.
Federal Aviation Administration identified a new safety risk in
the planemaker's grounded 737 MAX aircraft. Conagra Brands CAG.N reported quarterly earnings that
missed analyst estimates because of waning demand and
manufacturing challenges. Its shares dropped 10.5%.
Higher drug prices and an increase in prescription volume
helped Walgreens Boots Alliance Inc WBA.O beat quarterly
earnings expectations, sending its stock up 5.1%. Advancing issues outnumbered declining ones on the NYSE by a
2.43-to-1 ratio; on Nasdaq, a 2.81-to-1 ratio favored advancers.
The S&P 500 posted six new 52-week highs and one new low;
the Nasdaq Composite recorded 27 new highs and 46 new lows.