Stocks Opened Higher ahead of Fed Decision

U.S. stocks opened slightly higher on Wednesday as investors braced for an updated monetary-policy outlook from the Federal Reserve. A pair of stronger-than-expected reports on manufacturing and inflation also boosted sentiment. The Dow Jones Industrial Average lately added 38.08 points, or 0.22%, to 17,712.90. The S&P 500 gained 6.75 points, or 0.33%, to 2,082.07. The Nasdaq Composite was up 14.53 points, or 0.30%, to 4,858.08.

Factory activity in New York expanded in June, rebounding from a May decline as manufacturer orders and shipments rose. The Federal Reserve Bank of New York said Wednesday that its Empire State manufacturing index rose to 6 in June, after slumping to minus 9 the previous month.

Prices charged by U.S. producers rose at the fastest pace in four months, driven higher by the biggest monthly increase in energy prices in a year. The Labor Department said Wednesday that its producer price index, which measures inflation pressures before they reach the consumer, increased 0.4 percent in May after a 0.2 percent rise in April.

Oil prices on Wednesday were on course for a fifth fall in what would be their longest losing streak since February, knocked by mounting concerns about Britain’s possible exit from the European Union and a surprise rise in U.S. inventories. Brent crude futures fell 70 cents on the day to $49.13 a barrel by 1125 GMT, while U.S. crude prices fell 47 cents to $48.02.