(Updates with U.S. market open, changes byline, dateline;
* MSCI World index poised for best month since 2006
* Solid earnings underpin stocks
* Oil climbs on output deal hope
* Eurozone inflation, growth accelerates
* Oil set for 2nd week of losses on oversupply
By Chuck Mikolajczak
NEW YORK, April 28 World stock markets dipped on
Friday, with U.S. equities stalling after a soft reading on
first-quarter economic growth, while the euro strengthened as
euro zone inflation rose to hit the European Central Bank's
The U.S. economy grew at a 0.7 percent annual rate in the
first quarter, its weakest pace in three years, amid tepid
consumer spending and as businesses invested less on
inventories, in a potential setback to President Donald Trump's
promise to boost growth.
The lackluster number sent equity indexes on Wall Street
slightly lower, although strong earnings from Google parent
Alphabet, which was up 4.7 percent, and Amazon
, which rose 1.8 percent, curbed losses on the benchmark
S&P index and briefly pushed the Nasdaq to a record.
"Equities are off to slow start this morning as investors
are digesting a relatively weak first quarter GDP report, but on
balance there remains much to like about the current
environment," said Terry Sandven, chief equity strategist
at U.S. Bank Wealth Management in Minneapolis.
"The investment stars appear perfectly aligned - earnings
are increasing, the Goldilocks-like economy remains in force and
equities appear on the fringe of a technical breakout with the
S&P on the doorstep of all-time highs," Sandven said.
First-quarter earnings are currently expected to grow by
13.6 percent, according to Thomson Reuters data, the best
performance since 2011.
The Dow Jones Industrial Average fell 30.62 points,
or 0.15 percent, to 20,950.71, the S&P 500 lost 3.62
points, or 0.15 percent, to 2,385.15 and the Nasdaq Composite
dropped 0.46 points, or 0.01 percent, to 6,048.48.
The Dow was on track for its best week since early December
while the Nasdaq was poised for a sixth-month winning streak,
its longest since 2013.
The pan-European FTSEurofirst 300 index lost 0.21
percent and MSCI's gauge of stocks across the globe
shed 0.12 percent.
At six straight months of gains, MSCI's index was set to
notch its longest monthly winning streak since 2006.
Inflation blew past expectations to hit a three-year high,
keeping pressure on the European Central Bank to start dialing
back its stimulus measures.
Euro zone bond yields rose, with the yield on 10-year
benchmark German government bonds hitting a
session high of 0.361 percent, and the euro strengthened
against the dollar, up 0.19 percent to $1.0893.
U.S. Treasury debt yields rose across the board on Friday
after the GDP data. Benchmark 10-year notes last
fell 3/32 in price to yield 2.3072 percent, from 2.296 percent
late on Thursday.
In commodities, oil prices advanced after a slide to a
one-month low the previous day spurred buying ahead of an OPEC
meeting next month at which producers could prolong output
curbs. Both Brent and U.S. crude were on track for their second
straight weekly and monthly declines.
U.S. crude rose 0.55 percent to $49.24 per barrel
and Brent was last at $52.15, up 0.64 percent on the
(Additional reporting by Caroline Valetkevitch; Editing by