US stocks rose on Wednesday on merger activity in the healthcare sector even as energy stocks sold off after a large build-up in crude stockpiles sent oil futures reeling. Traders are keeping an eye out for the release of minutes from the Federal Open Market Committee's March policy meeting, in which the Fed downgraded its economic growth and inflation projections while leaving the door open to raising rates in the near future. The minutes are due at 2 pm EDT (1800 GMT).
Mylan shares jumped 14.4 percent to $68.15, boosting the Nasdaq and the S&P healthcare sector, on news it offered to buy Perrigo for about $29 billion in cash and stock. Perrigo shares jumped 21.7 percent to $200.50.
Biotech and pharmaceuticals have seen more than $60 billion in deals so far this year, the highest volume since 2009.
Energy stocks, which had been supported by Royal Dutch Shell's $70 billion bid for rival BG Group, fell sharply after the EIA data.
At 12:49 pm EDT (1649 GMT) the Dow Jones industrial average rose 38.67 points, or 0.22 percent, to 17,914.09, the S&P 500 gained 5.93 points, or 0.29 percent, to 2,082.26, and the Nasdaq Composite added 37.49 points, or 0.76 percent, to 4,947.72.
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