GLOBAL MARKETS-Wall St rebounds, dollar gains on solid GDP data, upbeat earnings

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* Better-than-expected Q2 U.S. GDP data boosts Wall St
* Upbeat earnings from Alphabet, Intel, Starbucks, others
* Dollar hits two-month high
* Investors eye U.S.-China trade talks, Fed meeting
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(Updates to U.S. market morning trade, changes dateline,
byline)
By Stephen Culp
NEW YORK, July 26 (Reuters) - U.S. stocks bounced back and
the dollar hit a two-month peak on Friday as solid economic data
and a spate of positive earnings reports brought buyers back to
the market.
A host of upbeat quarterly reports from a broad range of
U.S. companies, including Google parent Alphabet Inc GOOGL.O ,
Intel Corp INTC.O , Starbucks Corp SBUX.O and McDonald's Corp
MCD.N helped allay disappointment over Amazon.com's AMZN.O
miss. U.S. economic growth slowed less than analysts expected in
the second quarter as consumer spending surged, more than making
up for a drop in imports and inventory build-up. The GDP report was "slightly better than expected but
certainly not enough to change the path of the Fed meeting by
the end of this month," said Art Hogan, chief market strategist
at National Securities in New York. "This is just what the
market needed, not so soft that the economy is slowing down
precipitously and not so strong that the Fed is going to reverse
course."
Investors now look ahead to the coming week, when
negotiators arrive in Beijing to resume talks aimed toward
resolving the long-running U.S.-China trade war and the Federal
Reserve's policymakers convene, which is expected to culminate
in the first interest rate cut in a decade.
The Dow Jones Industrial Average .DJI rose 1.96 points, or
0.01%, to 27,142.94, the S&P 500 .SPX gained 13.26 points, or
0.44%, to 3,016.93 and the Nasdaq Composite .IXIC added 64.28
points, or 0.78%, to 8,302.82.
A rally in media stocks pushed European shares higher, in a
rebound from Thursday's drop after the European Central Bank
left interest rates unchanged and toned down monetary easing
expectations. The pan-European STOXX 600 index .STOXX rose 0.29% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.13%.
Bucking the trend, emerging-market assets were on track to
end the week lower, as investors shied away from riskier assets
after ECB President Mario Draghi gave a rosier-than-expected
economic outlook. Emerging market stocks fell 0.49%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.69%
lower, while Japan's Nikkei .N225 dropped 0.45%.
The dollar index, which measures the greenback against other
world currencies, climbed to a two-month high, setting a course
for a second straight weekly advance. The dollar index .DXY rose 0.14%, with the euro EUR=
down 0.12% to $1.1132.
The Japanese yen weakened 0.05% versus the greenback at
108.71 per dollar, while sterling GBP= was last trading at
$1.24, down 0.43% on the day.
U.S. Treasuries were steady after yields briefly rose on the
better-than-expected GDP report. Benchmark 10-year notes US10YT=RR last fell 2/32 in price
to yield 2.0808%, compared with 2.074% late on Thursday.
The 30-year bond US30YT=RR last rose 6/32 in price to
yield 2.5951%, compared with 2.603% late on Thursday.
The positive economic data helped keep oil prices in check,
but crude is still on track for a weekly increase in the face of
Middle East tensions. U.S. crude CLcv1 fell 0.27% to $55.87 per barrel and Brent
LCOcv1 was last at $63.24, down 0.24% on the day.
Spot gold XAU= added 0.5% to $1,420.63 an ounce.
Copper CMCU3 lost 0.60% to $5,971.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
lost 1.40% to $1,800.50 a tonne.