US STOCKS-Wall St clings to gains on trade hopes

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* Trump predicts swift end to trade war with China

* Foot Locker, Autodesk fall as quarterly profit disappoint

By Shreyashi Sanyal and Amy Caren Daniel

May 24 (Reuters) - U.S. stocks gained on Friday, ahead of along Memorial day weekend, after U.S. President Donald Trumppredicted a swift end to the ongoing trade war with China.

Trump said on Thursday that Huawei Technologies Co LtdHWT.UL could also be included in the trade deal, while at thesame time calling the Chinese telecommunications giant "verydangerous." urn:newsml:reuters.com:*:nL4N22Z35N

However, no high-level talks have been scheduled since thelast round of negotiations in Washington two weeks ago. urn:newsml:reuters.com:*:nL4N22Z35N

The S&P 500 index .SPX is on pace to end the week 1%lower, which would make it the third straight week of losses forthe benchmark index, as markets worried that the trade war wouldresult in a global economic slowdown.

"The markets seem to be struggling to hold on to gains rightnow because people don't want to be too long heading into theholiday weekend," said Marc Pfeffer, chief investment strategistat CLS Investments in Omaha, Nebraska.

Adding to concerns about a slowing broader economy, datashowed that U.S.-made capital goods fell more than expected inApril. urn:newsml:reuters.com:*:nL2N22Z1BJ

"The positive trade narrative has trumped data today," saidMike Dowdall, investment strategist for BMO Global AssetManagement, in Chicago.

At 12:55 p.m. ET the Dow Jones Industrial Average .DJI wasup 115.03 points, or 0.45%, at 25,605.50. The S&P 500 .SPX wasup 9.31 points, or 0.33%, at 2,831.55 and the Nasdaq Composite .IXIC was up 31.70 points, or 0.42%, at 7,659.99.

Technology shares, that were among the hardest hit thisweek, rose 0.53% boosted by gains in chipmaker Intel CorpINTC.O and iPhone maker Apple IncAAPL.O .

Financials .SPSY gained 0.61%, as U.S. treasury yieldsrose for the first time in three days.

However markets were off their session highs, with traderssaying volatile trading and thin volumes were likely as marketparticipants geared up for the long weekend.

Foot Locker IncFL.N plunged 17.1%, the most on the S&P,after the footwear retailer, one of the biggest U.S. retailersof Nike IncNKE.N shoes, missed quarterly profit andsame-store sales estimates. Shares of Nike dipped 0.2%.

Total System Services IncTSS.N jumped 13.4% afterBloomberg reported Global Payments IncGPN.N has heldpreliminary tie-up talks with the payment solutions provider.Global Payments' shares rose 5.5%. urn:newsml:reuters.com:*:nL4N23011B

Autodesk IncADSK.O fell 4.5% after the software makerreported quarterly earnings below expectations.

Advancing issues outnumbered decliners by a 1.99-to-1 ratioon the NYSE and a 1.94-to-1 ratio on the Nasdaq.

The S&P index recorded 36 new 52-week highs and 16 new lows,while the Nasdaq recorded 33 new highs and 86 new lows. (Reporting by Shreyashi Sanyal and Amy Caren Daniel inBengaluru; Editing by Arun Koyyur and Anil D'Silva) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;Reuters Messaging:Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

This article appears in: Politics , World Markets , Stocks , US Markets
Referenced Symbols: AAPL ,

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