US open: Stocks gain ahead of Federal Reserve meeting minutes

US stocks advanced on Wednesday as oil prices rose and investors weighed mixed economic data.

The Dow Jones Industrial Average increased 0.82%, the Nasdaq climbed 1.04% and the S&P 500 gained 0.92 at 1500 GMT.

Oil prices were on the rise on hopes that global oil producers would conclude a deal on freezing production after a key meeting in Iran. Iranian oil minister Bijan Zanganeh met his counterparts from Iraq, Venezuela and Qatar in Tehran on Wednesday.

West Texas Intermediate crude rose 2.2% to $29.71 per barrel and Brent gained 2.8% to $33.12 per barrel at 1507 GMT.

In economic data, industrial and manufacturing output figures from the Federal Reserve surprised to the upside. Industrial production was up 0.9% in January compared to a month ago, beating analysts’ estimates for a 0.4% increase. Manufacturing output rose 0.5% month-on-month in January, ahead of forecasts for a 0.2% gain.

US housing starts figures were less impressive, falling 3.8% in January on the month, trailing estimates for a 2% rise, the Commerce Department revealed.

Mortgage applications in the US increased 8.2% in the week to 12 February, according to the Mortgage Bankers Association.

Still to come, the Federal Reserve releases the minutes of its 26-27 January policy meeting at 1900 GMT, providing more details on its decision to hold interest rates steady. The minutes may offer clues on the next policy change after it raised the benchmark interest rate in December for the first time in nearly a decade.

Among corporate stocks, Priceline gained after the travel website operator reported a rise in fourth quarter profit that surpassed expectations.

Fossil Group rallied after the watchmaker posted better-than-estimated quarterly results.

Kinder Morgan was sitting higher after Berkshire Hathaway disclosed a stake in the pipeline operator.

The dollar was higher against most main currencies, rising 0.21% versus the pound, 0.18% against the euro and 0.20% versus the yen.

The 10-year US Treasury yield jumped five basis points to 1.82%.