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* Boeing extends fall after brokerages downgrade
* Coty jumps on plan to sell professional beauty business
* Chipmakers, tech stocks rise on trade hopes
* Indexes up: Dow 0.12%, S&P 500 0.52%, Nasdaq 0.73% (Updates market action, adds comments)
By Shreyashi Sanyal
Oct 21 (Reuters) - Wall Street rose on Monday on signs of progress in resolving the prolonged U.S.-China trade war, while a second straight session of declines for Boeing pressured the blue-chip Dow index.
White House adviser Larry Kudlow said tariffs scheduled for December could be withdrawn if talks go well, adding to optimism after China said it will work with the United States to address each other's core concerns.
Trade-sensitive technology stocks gained 0.8%, while the Philadelphia Semiconductor index climbed 1.6% on gains in U.S. chipmakers with a large exposure to China.
"It is a bit more confirmation from China as to what was agreed with the U.S. in discussions towards the stage one trade deal" said Jon Adams, investment strategist at BMO Global Asset Management.
A 1.2% gain in financial stocks also propped up the S&P 500 index. Big banks posted largely upbeat quarterly results last week in a strong start to the earnings season.
"The earnings estimates are too low this year for both Q3 and Q4. We should be able to surprise on the upside and we are seeing that in early stages of Q3," Adams added.
Shares of Boeing Co were on track for their worst two-day fall in over a decade as multiple brokerages downgraded the stock following reports that call into question the timing of the grounded 737 MAX jet's return to service.
The planemaker maker's shares fell 3.4%.
Signs of progress in trade talks have helped Wall Street recover from a rough start to the month. The benchmark S&P 500 index ended Friday with its second weekly gain, while the Nasdaq rose for the third week in a row.
At 11:09 a.m. ET, the Dow Jones Industrial Average was up 32.84 points, or 0.12%, at 26,803.04, the S&P 500 was up 15.58 points, or 0.52%, at 3,001.78. The Nasdaq Composite was up 59.37 points, or 0.73%, at 8,148.91.
Investors are now gearing up for earnings reports this week from high-profile companies including Boeing, Microsoft Corp , Procter & Gamble Co, United Parcel Service Inc and Caterpillar Inc.
Analysts have projected the first earnings contraction since 2016 for S&P 500 companies, but of the 75 companies that have reported results so far, only 12% have come in below estimates, according to Refinitiv data.
Halliburton Co gained 6.3%, reversing earlier losses, after the oilfield services provider detailed plans of further cost reductions.
Coty Inc was the biggest gainer among S&P 500 companies after the cosmetics maker said it was planning to sell its professional beauty business that houses brands such as Wella and OPI.
Cardinal Health Inc, McKesson Corp and AmerisourceBergen Corp led declines on the benchmark index.
The drug distributors, along with Teva Pharmaceutical Industries, reached a settlement with two Ohio counties related to the opioid crisis.
Advancing issues outnumbered decliners by a 2.50-to-1 ratio on the NYSE and by a 2.53-to-1 ratio on the Nasdaq.
The S&P index recorded 35 new 52-week highs and two new lows, while the Nasdaq recorded 76 new highs and 39 new lows. (Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing Anil D'Silva and Sriraj Kalluvila)