US close: Dow and S&P edge higher after release of Fed minutes

The Dow Jones Industrial Average closed up 27.09 points to 17,902.51, while the S&P 500 and the Nasdaq closed up 5.57 and 31.88 points respectively.

The minutes of the Federal Open Market Committee’s deliberations on 17 and 18 of March showed that several rate-setters preferred a June lift-off for the Fed funds rate, whereas others argued for delaying an increase further, while two members of the FOMC wanted to wait until 2016.

However, markets initially seemed to focus on the fact that “several participants judged that the economic data and outlook were likely to warrant beginning normalisation at the June meeting.”

"The labour market data will play the key role in determining the exact liftoff date," said Paul Ashworth, chief US economist at Capital Economics.

"If we are right and employment growth rebounds in April and May, then a June rate hike might not be out of the question."

Ashworth added that the way Treasury yields reacted to a first rate hike could determine the Fed's policy in the medium to long term future.

"If Treasury yields soar in response to the first rate hike, then the Fed might pause for quite a while," he said.

"In contrast, if yields barely budge, which we think is the more likely reaction, then the Fed might gain the confidence to begin a more normal tightening cycle."

However, analysts at Barclays insisted that a hike in September was likelier.

"We view September as the likely timing for the first rate hike, with some probability that the committee waits until December should core inflation be dragged lower by falling import prices," they said in a note.

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 plummeted after data showed US oil inventories posted the largest one-week increase in 14 years, with West Texas Intermediate falling 5.9% to $50.97 a barrel, while Brent crude dropped 5.3% to $56.11 a barrel.

In company news, Royal Dutch Shell Group fell 3.42% after announcing it would buy BG Group in a deal worth almost $70bn, while the British company jumped 38.03%.

Internet TV network Netflix rose 4.22% after analysts at Wedbush said they expected “upside” to first-quarter earnings from international growth and cost reduction efforts.

Apple fell 0.48% after analysts at Societe Generale downgraded their rating on the stock to 'hold'.

Lightweight material manufacturer Alcoa unofficially kicked off the earnings the season after the close and rose 0.% in after hour trading after reporting better-than-expected first quarter earnings, while revenue grew 7% year-on-year.

The dollar slid back 0.13% against the yen after the Bank of Japan held its policy steady and fell 0.31% against the pound, but gained 0.32% against the euro, while gold futures fell 0.69% to $1,202.30.

S&P 500 - Risers
Perrigo Company plc (PRGO) $195.00 +18.39%
Mylan Inc. (MYL) $68.36 +14.76%
Netflix Inc. (NFLX) $441.35 +4.22%
Delta Airlines Inc. (DAL) $43.28 +3.94%
Dollar Tree Inc (DLTR) $83.53 +3.66%
Southwest Airlines Co. (LUV) $42.85 +3.65%
Yahoo! Inc. (YHOO) $45.17 +3.58%
Jabil Circuit Inc. (JBL) $23.93 +2.92%
Dollar General Corp (DG) $76.07 +2.88%
Vertex Pharmaceuticals Inc. (VRTX) $123.79 +2.76%

S&P 500 - Fallers
Peabody Energy Corp. (BTU) $5.08 -4.87%
Nabors Industries Ltd. (NBR) $14.21 -4.50%
Pentair plc (PNR) $62.21 -3.49%
Allegheny Technologies Inc. (ATI) $30.06 -3.33%
Ensco Plc. (ESV) $22.73 -3.32%
QEP Resources Inc (QEP) $22.19 -3.18%
Southwestern Energy Co. (SWN) $24.10 -2.98%
Murphy Oil Corp. (MUR) $49.03 -2.76%
Newfield Exploration Co (NFX) $36.10 -2.46%
Helmerich & Payne Inc. (HP) $71.28 -2.38%

Dow Jones I.A - Risers
Nike Inc. (NKE) $100.84 +1.23%
Home Depot Inc. (HD) $115.59 +1.13%
Visa Inc. (V) $66.51 +1.08%
Walt Disney Co. (DIS) $106.36 +0.88%
Unitedhealth Group Inc. (UNH) $118.16 +0.69%
Boeing Co. (BA) $153.36 +0.68%
Wal-Mart Stores Inc. (WMT) $81.03 +0.66%
Cisco Systems Inc. (CSCO) $27.55 +0.58%
McDonald's Corp. (MCD) $96.85 +0.52%
Procter & Gamble Co. (PG) $82.77 +0.46%

Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $84.06 -1.97%
Chevron Corp. (CVX) $106.66 -1.73%
Merck & Co. Inc. (MRK) $57.15 -0.49%
Apple Inc. (AAPL) $125.60 -0.33%
Coca-Cola Co. (KO) $40.89 -0.29%
Verizon Communications Inc. (VZ) $49.13 -0.28%
Microsoft Corp. (MSFT) $41.42 -0.26%
International Business Machines Corp. (IBM) $161.80 -0.17%
Caterpillar Inc. (CAT) $80.44 -0.12%
General Electric Co. (GE) $25.01 -0.04%

Nasdaq 100 - Risers
Mylan Inc. (MYL) $68.36 +14.76%
Baidu Inc. (BIDU) $212.93 +4.44%
Netflix Inc. (NFLX) $441.35 +4.22%
Dollar Tree Inc (DLTR) $83.53 +3.66%
Yahoo! Inc. (YHOO) $45.17 +3.58%
Vertex Pharmaceuticals Inc. (VRTX) $123.79 +2.76%
Regeneron Pharmaceuticals Inc. (REGN) $453.19 +2.61%
Keurig Green Mountain Inc (GMCR) $117.70 +2.59%
Celgene Corp. (CELG) $115.18 +2.18%
Tesla Motors Inc (TSLA) $207.67 +2.17%

Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $5.71 -2.73%
Sba Communications Corp. (SBAC) $118.05 -1.30%
Kraft Foods Group, Inc. (KRFT) $88.38 -1.07%
Seagate Technology Plc (STX) $53.31 -0.82%
Broadcom Corp. (BRCM) $42.97 -0.47%
Twenty-First Century Fox Inc Class A (FOXA) $34.13 -0.35%
Whole Foods Market Inc. (WFM) $51.35 -0.34%
Apple Inc. (AAPL) $125.60 -0.33%
Adobe Systems Inc. (ADBE) $75.44 -0.28%
Microsoft Corp. (MSFT) $41.42 -0.26%