US open: Stocks edge forward ahead of Fed minutes, as Alcoa kicks off earnings season

US stocks edged forward on Wednesday, as investors awaited the publication of the minutes from the latest Federal Reserve meeting.

Just in New York, the Dow Jones Industrial Average was up 0.27%, while the S&P 500 and the Nasdaq gained 0.30% and 0.37% respectively.

On Tuesday, US markets surrendered session gains to end lower amid worries about the upcoming earnings season which unofficially kicks off Wednesday.

According to data from Thomson Reuters, first-quarter S&P 500 earnings are projected to have declined by 2.8% from a year ago, which would make the quarter the worst for results since the third quarter of 2009, not long after the US emerged from the Great Recession.

”Considering the way the dollar has strengthened over the last three months observers will be keen to see how much of a negative impact this is having on the US corporate arena,” said Alastair McCaig, market analyst at IG.

On Wednesday, traders will be anticipating the release of the latest minutes of the Fed meeting, which could offer more signs of the US central banks stance on the pace of rate increases.

Investors are also likely to focus on comments from New York Fed President William Dudley and Fed Governor Jerome Powell.

“At the last meeting the Fed dropped its ‘patience’ language but also revised down its growth and inflation forecasts,” said CMC Markets’ analyst Jasper Lawler.

“The removal of forward guidance was largely priced in so it was the growth revisions that markets reacted to.”

Meanwhile, the Mortgage Bankers Association said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, climbed 0.4% in the week ended 3 April.

Oil prices were under pressure in the wake of rising inventory and record output in Saudi Arabia. West Texas Intermediate fell 2.7% to $52.56 a barrel, while Brent crude dropped 1.79% to $58.06 a barrel.

In company news, Royal Dutch Shell Group fell 3.46% after announcing it would buy BG Group in a deal worth almost $70bn, while the British company jumped 31.59%.

Lightweight metals manufacturer Alcoa, which will unofficially kick off the earnings season on Wall Street after the close on Wednesday, advanced 1.86%, while drugstore chain Rite Aid rose 1.96% after reporting better-than-expected fourth quarter profit.

Apple fell 0.2% after analysts at Societe Generale downgraded their rating on the stock to 'hold'.

The dollar slid back 0.4% against the yen after the Bank of Japan held its policy steady and fell 0.3% against the euro and 0.9% against the pound, while gold futures fell 0.34% to $1,206.50.