US stocks were modestly higher early on Wednesday afternoon, aiming for a fifth straight day of gains, ahead of the minutes of the Federal Reserve's latest meeting that could cement the chances of a widely expected interest rate hike next month. US interest rates futures were steady ahead of the minutes, due at 2 pm ET (1600 GMT). Fed funds futures implied traders priced in about an 83 percent chance of a rate hike in June, little changed from Tuesday's close. Investors are also awaiting more details regarding the Fed trimming its $4.5 trillion balance sheet.
"The real take from the Fed is that a June rate hike still seems to pretty much baked in the cake, but I'm going to be looking at guidance as how they expect to start spending down their excess assets," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts. While recent economic data has been mixed, with signs of a dip in consumer sentiment and spending, the job market continues to strengthen. That could give the Fed impetus to continue with its path of monetary tightening.
At 13:02 am ET (1702 GMT) the Dow Jones Industrial Average was up 31.98 points, or 0.15 percent, at 20,969.89, the S&P 500 was up 1.51 points, or 0.06 percent, at 2,399.93 and the Nasdaq Composite was up 9.51 points, or 0.15 percent, at 6,148.23. Seven of the 11 major S&P 500 sectors were higher, led by the materials index's 0.63 percent rise.