Ahead of Fed, stocks struggle

NEW YORK (CNNMoney.com) -- Stocks were mixed Wednesday morning as investors considered Cisco's in-line forecast and lower oil prices ahead of the conclusion of the Federal Reserve policy meeting.

The Dow Jones industrial average (down 3.49 to 13,305.58, Charts) and the broader S&P 500 index (down 1.83 to 1,505.89, Charts) both lost a few points 90 minutes into the session, while the tech-fueled Nasdaq composite (down 11.33 to 2,560.42, Charts) lost 0.5 percent.

After rising pretty steadily over the last five weeks, stocks stalled out Tuesday, with the Dow ending its attempt to eke out the longest up streak in Wall Street history. Nonetheless, the blue-chip barometer did manage to tie an almost 80-year old record, rising in 24 of 27 sessions.

The advance lifted the S&P 500 to within 18 points of its all-time high from March 2000, while the Nasdaq topped out at a 6-year high.

After such a run, stocks were a little vulnerable, and the Fed meeting gave investors a reason to step back.

Central bank policymakers meeting Wednesday are widely expected to keep a key short-term interest rate unchanged at 5.25 percent, as they have for the last six meetings. But as always, investors will be focused on the accompanying statement and what it says about the economy and the future of Fed rate policy.

In corporate news, two marquee companies reported quarterly earnings after the close Tuesday.

Cisco Systems (down $1.83 to $26.53, Charts, Fortune 500) reported higher quarterly sales and earnings that topped estimates and issued an in-line forecast for the current quarter. But at the end of a strong earnings reporting period, investors were perhaps looking for more. Cisco shares fell 5 percent Wednesday morning.

Walt Disney (Charts, Fortune 500), a Dow component, reported higher quarterly earnings that topped estimates. However, the media leader also said sales increased just 1 percent, missing analysts' expectations. Shares fell 1 percent Wednesday.

Alltel (up $0.75 to $65.95, Charts, Fortune 500) is being pursued by three private equity groups in a deal that could value the rural telecom company at up to $30 billion, The Wall Street Journal reported. Alltel shares gained 1 percent.

Shares of Rio Tinte (up $14.73 to $279.38, Charts) jumped on reports that larger rival BHP Billiton (up $1.33 to $52.23, Charts) is looking to buy the miner in a deal that could be worth more than $100 billion.

Market breadth was mixed. On the New York Stock Exchange, advancers and decliners were narrowly mixed, while on the Nasdaq, losers beat winners 4 to 3 on volume of 650 million shares.

U.S. light crude oil for June delivery fell 81 cents to $61.45 a barrel on the New York Mercantile Exchange after a government report said gasoline supplies rose last week, diminishing worries about any supply shortage ahead of the start of the summer driving season.

COMEX gold for June delivery fell 80 cents to $686.60 an ounce.

Treasury prices were little changed ahead of the Fed meeting, with the 10-year note yield at 4.63 percent, roughly where it stood late Tuesday.

In currency trading, the dollar slipped against the euro and the yen.