* Indexes up: Dow 0.7%, S&P 500 0.6%, Nasdaq 0.1%

* Intel ( INTC ) falls despite upbeat quarterly revenue, profit

forecast

* Digital Realty ( DLR ) eyes best day in 17 years on upbeat outlook

(Updates throughout)

By Ragini Mathur and Avinash P

July 24 (Reuters) - Wall Street's major indexes rose on

Friday but remained on track for weekly losses, as investors

weighed a busy slate of corporate earnings, escalating Middle

East tensions and new tariffs announced by the Trump

administration.

Intel ( INTC ) added to this week's key earnings reports,

forecasting quarterly profit and revenue above Wall Street

estimates and outlining plans to increase spending over the next

two years. The chipmaker's shares fell 3% despite upbeat

results.

The broader semiconductor gauge, the Philadelphia SE

Semiconductor index, shed 2.7%.

The S&P 500 and Nasdaq were on track to post a second

straight weekly loss, while the Dow was headed for a third

consecutive week in the red, following Thursday's bruising

selloff led by the large-cap technology stocks.

Investor concerns over the growing cost of AI investments

have become a central theme for markets after results from

Alphabet and Tesla highlighted rising capital

spending and cash burn among major technology companies.

That has set a cautious tone ahead of next week's earnings

from Microsoft ( MSFT ), Amazon ( AMZN ) and Meta.

"I would say as a whole, the hyperscalers, unfortunately,

continue to be viewed as the funders of the boom," said Sameer

Samana, head of Global Equities and Real Assets at Wells Fargo

Investment Institute.

"It looks like the market is starting to worry a little bit

about cash flows."

Real estate was the S&P 500's best-performing sector, rising

2.3%.

Shares of Digital Realty Trust ( DLR ) jumped 15% and were

on track for their best day since 2009 after the firm raised its

full-year forecast for funds from operations.

Meanwhile, the Trump administration imposed new tariffs of

10% and 12.5% on goods from 60 trading partners, citing lax

enforcement of forced-labor bans. The move came as a temporary

10% global tariff expired.

"It's going to put a stagflationary impulse into the

economy," Samana said.

"Monetary policymakers are going to have to grapple with

that, and there are no easy answers to stagflationary shocks."

Geopolitical risks were in focus after U.S. missiles struck

targets across Iran on Friday following President Donald Trump's

warning of "major military punishment" for Tehran and its Houthi

allies in Yemen.

Despite oil prices easing on Friday, a sustained energy

shock could rekindle global inflation concerns and prompt

central banks to recalibrate monetary policy.

The Federal Reserve is due to meet next week, with markets

pricing in a roughly one-in-three chance of a rate hike, up from

12% a week earlier, according to CME's FedWatch tool.

Investors will also watch next week's PCE data, the Fed's

preferred inflation gauge, due a day after the policy decision.

At 11:58 a.m. the Dow Jones Industrial Average rose

358.97 points, or 0.70%, to 52,073.03, the S&P 500 gained

43.50 points, or 0.59%, to 7,451.80 and the Nasdaq Composite

gained 30.60 points, or 0.12%, to 25,168.30.

Data showed that activity in the U.S. services sector

accelerated in July, aided in part by spending around the FIFA

World Cup and the Independence Day holiday, while the pace of

growth in the manufacturing sector eased to the slowest since

March.

Among others, SLB gained 10% after the oilfield

services firm beat expectations for second-quarter profit.

Advancing issues outnumbered decliners by a 2.11-to-1 ratio

on the NYSE, and by a 1.11-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and four new lows,

while the Nasdaq Composite recorded 61 new highs and 147 new

lows.