* Nasdaq, S&P 500 hit intra-day record highs
* Q2 U.S. GDP data better than expected
* Positive earnings from Alphabet, Intel, Starbucks, others
* Dollar hits two-month high
* Investors eye U.S.-China trade talks, Fed meeting (Updates to U.S. market morning trade, changes dateline, byline)
By Stephen Culp
NEW YORK, July 26 (Reuters) - The S&P 500 and the Nasdaq hit fresh intraday highs and the dollar reached a two-month peak on Friday as strong economic data and a stream of upbeat earnings reports stoked investor sentiment.
A spate of solid quarterly results from a wide array of U.S. companies, including Google parent Alphabet Inc, Intel Corp, Starbucks Corp and McDonald’s Corp helped allay disappointment over Amazon.com’s miss.
U.S. economic growth slowed less than analysts expected in the second quarter on a jump in consumer spending, which more than made up for a drop in imports and a slowdown in inventory build-up.
“All and all, it was a pretty decent number given where estimates were a few weeks ago,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Market participants now look to the coming week, when U.S. and China negotiators are due resume talks in Beijing aimed at resolving the market-rattling trade war and the Federal Reserve is expected to cut interest rates for the first time in a decade at the conclusion of their two-day monetary policy meeting.
“It’s good that (the U.S. and China) are talking,” Hellwig added. “That’s about all the market expects, a continuing dialogue.”
Regarding the Fed meeting, Hellwig believes the central bank will deliver the expected 25 basis point interest rate cut.
“I think the net result will be positive and reaffirm that the Fed is our friend,” he said, adding that the European Central Bank on Thursday “set the stage for monetary easing” globally.
The Dow Jones Industrial Average rose 14.39 points, or 0.05%, to 27,155.37, the S&P 500 gained 19.78 points, or 0.66%, to 3,023.45 and the Nasdaq Composite added 89.01 points, or 1.08%, to 8,327.55.
A rally in large-cap stocks pushed European shares higher, as positive earnings and a surge in Vodafone Group spurred a recovery from Thursday’s sell-off, which was driven by the European Central Bank leaving interest rates unchanged.
The pan-European STOXX 600 index rose 0.31% and MSCI’s gauge of stocks across the globe gained 0.24%.
Bucking the trend, emerging-market assets slipped as investors shied away from riskier assets after ECB President Mario Draghi gave a rosier-than-expected economic outlook.
Emerging market stocks lost 0.51%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.69% lower, while Japan’s Nikkei lost 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 rose 0.22%, with the euro down 0.21% to $1.1122.
The Japanese yen weakened 0.08% versus the greenback at 108.73 per dollar, while sterling was last trading at $1.2384, down 0.56% on the day.
U.S. Treasuries yields were steady following the U.S. Commerce Department’s better-than-expected GDP report.
Benchmark 10-year notes last fell 1/32 in price to yield 2.0756%, from 2.074% late on Thursday.
The 30-year bond last rose 3/32 in price to yield 2.5987%, from 2.603% late on Thursday.
Oil prices inched higher and were on track for a weekly increase due to concerns over the safety of oil transport around the Strait of Hormuz.
U.S. crude fell 0.04% to $56.00 per barrel and Brent was last at $63.34, down 0.08% on the day.
Spot gold added 0.4% to $1,419.16 an ounce.
Copper lost 0.82% to $5,958.00 a tonne.
Three-month aluminum on the London Metal Exchange lost 1.07% to $1,806.50 a tonne. (Reporting by Stephen Culp; additional reporting by Evan Sully and Tom Arnold; Editing by Cynthia Osterman)