* S&P 500, Dow extend gains, Nasdaq turns positive
* Indexes up: Dow 0.58 pct, S&P 500 0.41 pct, Nasdaq 0.17 pct (Updates to late afternoon, changes dateline to NEW YORK, changes byline)
By Stephen Culp
NEW YORK, Aug 17 (Reuters) - The S&P 500 and the Dow Jones Industrial average extended earlier gains and the Nasdaq turned positive on Friday on reports of potential progress in easing trade tensions between the United States and its trading partners.
"Any conversations we have with China to come up with a deal and any conversations we have with Mexico would be seen as a win for the U.S.," said Jeffrey Frankel, president at Stuart Frankel & Co, in New York.
The Dow Jones Industrial Average rose 148.81 points, or 0.58 percent, to 25,707.54, the S&P 500 gained 11.7 points, or 0.41 percent, to 2,852.39 and the Nasdaq Composite added 13.00 points, or 0.17 percent, to 7,819.52.
Reporting by Stephen Culp Editing by Frances Kerry