Tuesday's early afternoon trade: US market edges up before Fed decision

US stocks edged higher on Tuesday, but investors were keeping to the sidelines before the Federal Reserve's interest-rate decision, with opinion divided over the likely size of a cut.
In its last meeting of 2007, the Fed is widely expected to cut rates for a third straight time to fortify the economy against a credit crunch and housing slump that some economists fear could bring a recession.
Fed funds futures are signalling a quarter-percentage-point cut in the Fed's benchmark rate to 4.25 percent, with about a 38 percent chance of a half-point reduction. Technology shares were a bright spot, with Texas Instruments' shares up 2.9 percent at $33.61, after the chip maker increased expectations for fourth-quarter revenue and earnings late on Monday.
The Dow Jones industrial average was up 11.71 points, or 0.09 percent, at 13,738.74. The Standard & Poor's 500 Index was up 2.88 points, or 0.19 percent, at 1,518.84. The Nasdaq Composite Index was up 11.24 points, or 0.41 percent, at 2,730.19.