US STOCKS-Wall St bounces after selloff, GDP data
* Indexes up: Dow 0.49 pct, S&P 0.31 pct, Nasdaq 0.43 pct
By Chuck Mikolajczak
NEW YORK, Sept 26 (Reuters) - U.S. stocks were climbing in the early stages of trading on Friday, with major indexes bouncing back modestly from their biggest drop since July, after data showed the economy grew at its fastest pace in more than two years.
The Commerce Department raised its estimate of gross domestic product to show the economy expanded at a 4.6 percent annual rate, in line with expectations and the best performance since the fourth quarter of 2011.
Major indexes saw their biggest declines since July 31 on Thursday in a broad selloff, with the S&P 500 falling through a key technical support level as Apple slumped and the dollar hit a four-year high.
"The equity market in general is looking for near-term conviction," said Terry Sandven, senior equity strategist at U.S. Bank Wealth Management in Minneapolis.
"In recent months, the 'Goldilocks' scenario of modest growth and tame inflation (has) largely been in play and the economy has not been too slow or too fast, and in recent days that characterization is being challenged a bit."
The S&P has dropped for four of the past five sessions and closed below its 50-day moving average for the first time since Aug. 15. That level had previously served as support, and a protracted period underneath it could signal further losses.
The Dow Jones industrial average was rising 83.22 points, or 0.49 percent, at 17,029.02, the S&P 500 was gaining 6.02 points, or 0.31 percent, at 1,972.01 and the Nasdaq Composite was adding 19.11 points, or 0.43 percent, at 4,485.85. Continuación...