US open: Stocks rise ahead of FOMC meeting minutes

US stocks rose on Wednesday ahead of the release of the Federal Reserve’s policy meeting minutes.

At 1516 GMT the Dow Jones Industrial Average increased 0.09%, the S&P 500 climbed 0.22% and the Nasdaq grew 0.61%.

At the same time oil prices wavered as a report from the Energy Information Administration showed US crude oil inventories rose 1.3m barrels to a historical high of 541.3m barrels in the week ended 13 May. West Texas Intermediate rose 0.67% to $48.64 per barrel and Brent was up 0.36% to $49.53per barrel at 1536 BST.

The Fed releases the minutes of its 26-27 April meeting at 1900 BST, which may provide clues on whether the central bank will raise interest rates in June.

Societe Generale said Fed officials appear to be leaning more heavily against the ultra-dovish rate path implied by the market.

“Last week, Eric Rosengren, a current voter, said that market remains too pessimistic about the US economy,” the bank said.

“Yesterday, Fed Presidents Williams and Lockhart remarked that two to three hikes for this year are appropriate and Kaplan said that rate hikes are appropriate in the not-too-distant future.”

SocGen argued that a rate hike in June was unlikely but said the Fed may be starting to make preparations for an eventual hike, perhaps by returning to a balance risk assessment in the June FOMC statement. The bank sees only one hike this year, in December.

“Today’s FOMC minutes may offer more clues about the likelihood of a hike in July or September. Importantly, the Fed’s ability to deliver will hinge heavily on the market’s reaction to the more hawkish rhetoric and we assume that the path will be rocky,” SocGen said.

On the corporate front, Target’s shares plunged after the retailer reported a lower-than-expected increase in first quarter sales at established stores

Lowe’s gained after the home improvement chain posted quarterly sales that beat estimates.

FedEx rose after saying its planned takeover of TNT Express should settle on 25 May.

Staples advanced as is reported first quarter earnings that surpassed analysts’ estimates.

In currencies, the dollar was 0.25% firmer against the euro, 0.49% up against the yen but down 0.84% versus the pound.