Stocks stabilize pre-Fed

NEW YORK (CNNMoney.com) -- Stocks were mixed early Wednesday afternoon ahead of the conclusion of the latest Fed policy meeting as investors weighed Cisco's earnings and forecast, falling oil prices and the latest merger news.

The Dow Jones industrial average (up 4.80 to 13,313.87, Charts) added a few points and the broader S&P 500 index (up 0.01 to 1,507.73, Charts) was little changed 3 hours into the session, while the tech-fueled Nasdaq composite (down 6.81 to 2,564.94, Charts) lost 0.2 percent, trimming bigger gains from the morning.

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.

Following such an advance, investors were a little hesitant Wednesday, especially ahead of the latest from the Federal Reserve.

"After the run up, it's understandable that everyone wants to take a step back and assess what has happened and what could happen," said Russell Lundeberg Jr., chief investment officer at Barrett Capital Management.

However, he said that the fundamentals of the market are positive and stock valuations seem to be reasonable in both the U.S. and overseas markets, factors that should support equities going forward.

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.

The statement is likely to be very similar to the last one, Lundeberg said, and unlikely to suggest a rate change in either direction is brewing.

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

Cisco Systems (down $1.82 to $26.54, 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 6 percent Wednesday.

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 $1.11 to $66.31, 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 $32.85 to $297.50, Charts) jumped on reports that larger rival BHP Billiton (up $2.52 to $53.42, Charts) is looking to buy the miner in a deal that could be worth more than $100 billion.

Shares of Dendreon (down $10.64 to $7.10, Charts) slumped nearly 60 percent in unusually active Nasdaq trading after U.S. regulators said they needed more information before they could approve the biotech's cancer vaccine. One month ago, the U.S. Food and Drug Administration's advisory panel recommended approval of the drug.

Market breadth was mixed. On the New York Stock Exchange, advancers topped decliners by a narrow margin, while on the Nasdaq, losers beat winners 4 to 3 on volume of 1 billion shares.

U.S. light crude oil for June delivery fell $1.21 to $61.05 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 $8.40 to $679 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.