Tuesday's early afternoon trade: stocks rise as Fed meet eyed; M&A picks up

Wall Street was higher in afternoon trading on Tuesday as deal activity picked up in the consumer and healthcare sectors and investors waited for the outcome of a two-day Federal Reserve meeting. The central bank is unlikely to raise rates in this meeting but investors will watch for any hints from Fed Chair Janet Yellen at a press conference after the meeting on Wednesday about the timing of a possible rate increase - the first in about a decade.
The Fed has said it remains data-dependent and will raise rates only when it sees an improvement in the economy. Second-quarter data points to a recovery after a halt in growth earlier in the year. US housing starts fell in May after a sharp increase the previous month, but a surge in permits for future construction to a near eight-year high suggested the pullback was temporary and pointed to underlying strength in housing.
"We continue to see some meaningful activity where M&A is concerned," said Eric Wiegand, senior portfolio manager at US Bank Wealth Management. At 12:49 pm ET (1649 GMT) the Dow Jones industrial average was up 97.5 points, or 0.55 percent, at 17,888.67. The S&P 500 was up 8.88 points, or 0.43 percent, at 2,093.31 and the Nasdaq Composite was up 21.59 points, or 0.43 percent, at 5,051.56.