* Dow, S&P 500 up slightly in late-morning U.S. trading
* U.S. GDP increases at a 3.2% annualized rate
* Dollar slips and oil drops (Updates with early U.S. markets activity, changes byline and dateline, previous LONDON)
By Caroline Valetkevitch
NEW YORK, April 26 (Reuters) - Global stock markets mostly edged higher on Friday as data showing U.S. economic growth accelerated in the first quarter offset corporate earnings disappointments, while the dollar fell against a basket of currencies.
The Commerce Department said gross domestic product increased at a 3.2% annualized rate.
"(Stock) markets have been very strong all year, and this confirms that things are going fine, but we could see some volatility as investors dissect these numbers," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.
The jump in U.S. economic growth was driven by a smaller trade deficit and the largest accumulation of unsold merchandise since 2015, temporary factors that are likely to reverse in the coming quarters.
The dollar index, which measures the greenback against six major currencies, was 0.33% lower at 97.882. The index, which hit a 23-month high earlier in the session, is up 0.5% for the week.
Global stocks were mixed near flat. Tech shares weighed on the U.S. market, with Intel Corp down sharply after it cut its full-year revenue forecast and missed quarterly sales estimate for its key data center business. Exxon Mobil and Chevron also were lower following results Friday.
The Dow Jones Industrial Average rose 24.46 points, or 0.09%, to 26,486.54, the S&P 500 gained 4.43 points, or 0.15%, to 2,930.6 and the Nasdaq Composite dropped 8.84 points, or 0.11%, to 8,109.84.
The pan-European STOXX 600 index rose 0.16% and MSCI's gauge of stocks across the globe gained 0.18%.
The GDP release sets the stage for a Federal Reserve interest rate decision next week, when investors will try to anticipate how the U.S. central bank will react to mostly resilient indicators of late.
The rebound has not been mirrored in inflation, which remains subdued across much of the developed world, prompting a host of central banks to turn dovish.
Just this week central banks in Sweden and Canada have backed off plans to tighten, while the Bank of Japan tried to dispel doubts about its accommodative stance by pledging to keep rates at super-low levels for at least one more year.
The Federal Reserve next week is expected to reaffirm its patient stance. A Reuters poll of analysts published on Thursday found most believed the Fed was done with tightening altogether.
Benchmark 10-year notes last rose 9/32 in price to yield 2.5036%, from 2.534% late on Thursday.
U.S. crude fell 3.68% to $62.81 per barrel.
Additional reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru, Saqib Iqbal Ahmed in New York and Ritvik Carvalho in London; additional reporting by Wayne Cole and Swati Pandey in Sydney Editing by Gareth Jones and Alistair Bell