NEW YORK (TheStreet) -- Stock markets were edging higher Wednesday as crude oil moved higher after weekly domestic inventories dropped.
The S&P 500 was up 0.17%, the Dow Jones Industrial Average gained 0.18%, and the Nasdaq added 0.28%.
Crude oil extended gains after the Energy Information Administration reported a decline of 2.7 million barrels of crude in the week ended June 12, a steeper drop than an estimated 1.7-million-barrel decline. West Texas Intermediate crude added 1.7% to $60.96 a barrel. Major oilers Chevron (CVX), Halliburton (HAL), and Exxon Mobil (XOM) were all higher.
Investors were showing cautious optimism ahead of the Federal Reserve announcement on interest rates Wednesday afternoon.
Fed members will close out their two-day meeting mid-afternoon Wednesday with a statement and a press conference to follow. Of 79 economists surveyed by Bloomberg, only one expects a 25-basis-point hike after this meeting.
"The key is going to be trying to gauge [Fed Chair Janet] Yellen's mood," said Chris Gaffney, president of EverBank World Markets, in an investor conference call. "She's a dovish member and the Fed is generally dovish. The Fed would like to move off zero but at the same time they want to try to make sure the markets understand that the pace of rate increases is not going to be 'set it and forget it'... They're going to keep it data dependent."
FedEx (FDX) shares dropped more than 2% after the delivery company reported a mixed fourth quarter and falling operating margins. The company earned $2.66 a share on an adjusted basis, 2 cents below estimates, while revenue of $12.1 billion missed estimates by $210 million.