NEW YORK (TheStreet) -- The S&P 500 turned higher in late morning trading Wednesday after the Energy Information Administration said U.S. oil inventories rose 2.06 million barrels last week, a lower-than-forecast increase.
That data bolstered energy stocks, making the sector the biggest gainer on the S&P 500. The EIA report comes ahead of the Federal Reserve's October meeting, which likely will drive trading on Wednesday afternoon.
The S&P 500 rose 0.07%, while Nasdaq fell 0.27%. The Dow Jones Industrial Average rose 0.15%.
Oil inventories rose 2.06 million barrels in the last week of October, the EIA said. Analysts had expected inventories to rise 3.65 million barrels. The EIA's report, in addition to OPEC secretary general Abdalla El-Badri's forecast that global output won't rise in 2015, helped push oil higher after the commodity has fluctuated near multi-year lows this month.
Nymex West Texas Intermediate Crude was tradingup 1.3% at $82.50 in mid-morning trading Wednesday, while ICE Brent was higher at $87.23. Oil has tumbled in 2014 amid fears of oversupply.
"We think low energy costs could be a positive for consumers as we enter the holiday season," Terry Sandven, chief equity strategist at US Bank Wealth Management, said in a telephone interview.
The Federal Open Market Committee will conclude its two-day October meeting Wednesday afternoon, when it will confirm its monthly bond buying while also providing an updated outlook on the U.S. economy and inflation.
Guidance from the Federal Reserve has indicated an end to stimulus efforts this month, as do median forecasts of economists polled by Bloomberg.
"I don’t see how economic data has changed enough for Janet Yellen to not just taper at this point," said Brad Wilson, vice president of fixed income portfolio management at Boston Private Bank, in a telephone interview on Monday evening.
Wilson expects that interest rates will remain low for an extended period, even after the Fed ends its bond-buying program. “It is tough to drive interest rates higher when there is no wage growth,” he said.
Equity markets traded on Facebook's (FB) - Get Facebook, Inc. Class A Report disappointing profit outlook and a decision by Fiat Chrysler Automotive Group (FCAU) - Get Fiat Chrysler Automobiles N.V. Report to spin off part of its Ferrari division in 2015.
Fiat Chrysler Automotive Group shares surged more than 11% in morning trading after CEO Sergio Marchionne said the automaker plans to spin off 10% of Ferrari in 2015.
Facebook shares tumbled more than 6% in early trading on Wednesday after the social network said it expects costs to grow by 55% to 75% in 2015 as it ramps up investment in its work force, and integrates acquisitions such as WhatsApp and OculusRift.
Deutsche Bank (DB) - Get Deutsche Bank AG Report posted a third-quarter loss of 92 million euros ($116 million) as the bank faced ongoing financial burdens from lawsuits, new regulations and its effort to shed risky past investments. Shares in the conglomerate fell more than 2%.
Gilead Sciences (GILD) - Get Gilead Sciences, Inc. (GILD) Report reported adjusted earnings in the third quarter of $1.84 a share, topping analysts' forecasts. The HIV and hepatitis C drugmaker posted revenue of $6.04 billion; analysts were expecting $5.88 billion. Gilead said sales of Sovaldi, a hepatitis C drug, were $2.8 billion in the third quarter, below forecasts. Shares in the company were trading 1.30% lower in trading.
French drugmaker Sanofi (SNY) - Get Sanofi Sponsored ADR Report fired its CEO after he warned that pricing pressure on Lantus, a best-selling diabetes treatment in the U.S., would hurt growth into next year. Shares in Sanofi were tumbling more than 6% in early trading.
Orbital Sciences (ORB) , whose unmanned rocket exploded seconds after launch on Tuesday night. The rocket was carrying about 5,000 pounds of cargo for NASA and the International Space Station. Orbital Sciences was trading more than 13% lower.
Sodastream (SODA) - Get SodaStream International Ltd. Report , Ralph Lauren (RL) - Get Ralph Lauren Corporation Class A Report and Hyatt Hotels (H) - Get Hyatt Hotels Corporation Class A Report were trading lower after reporting third-quarter earnings in the on Wednesday, while Exelon (EXC) - Get Exelon Corporation Report and Phillips 66 (PSX) - Get Phillips 66 Report were trading higher.
Visa (V) - Get Visa Inc. Class A Report and Metlife (MET) - Get MetLife, Inc. (MET) Report will report third-quarter earnings after the market close on Wednesday. Visa is expected to earn $2.10 a share for the third quarter, while Metlife is forecast to earn $1.38, according to consensus estimates compiled by Bloomberg.
-- Written by Antoine Gara in New York