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.

Adobe Systems (ADBE) slipped 1.3% after reporting second-quarter earnings of 48 cents a share, 3 cents higher than expected. The software developer reported revenue of $1.16 billion, 8.4% higher than a year ago and in-line with estimates. The company's outlook for the third quarter, however, was weak.

ATM manufacturer NCR (NCR) was giving back some of the gains achieved on Tuesday's session after reports Blackstone Group (BX) and Carlyle Group (CG) were preparing to make a joint bid. The buyout would be valued at more than $10 billion, including debt.

Kythera Biopharmaceuticals (KYTH) rocketed 22.4% higher after Allergan (AGN) announced it would buy the biotech company in a deal worth $75 a share, or $2.1 billion.

Starbucks (SBUX) has announced it will close all 23 of its La Boulange bakery cafes by the end of September. The coffee house chain acquired the locations as part of an acquisition in 2012.

Bob Evans Farms (BOBE) moved higher after reporting a 2.1% increase in same-store sales in its fourth quarter. The company reported net income of 56 cents a share, 15 cents above estimates, while revenue of $332.39 million climbed 1.8%.

21st Century Fox (FOXA) shares were on watch after the company confirmed James Murdoch will replace founder and father Rupert Murdoch as CEO of the media conglomerate beginning July 1. Chase Carey, president and chief operating officer, will become executive vice chairman through to June 2016.

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