NEW YORK (CNN/Money) - U.S. stocks clung to small gains Tuesday after the Federal Reserve held interest rates steady but also said the risks of economic weakness and inflation were balanced, a move that could pave the way for the central bank to raise rates down the road.

Investors pretty much shrugged off the developments, which were widely expected. The Dow Jones industrial average closed the day up 57.50 to 10,635.25; it had gained as much as 82 points prior to the announcement. The Nasdaq composite rose 3.81 to 1,880.87; it had been up 11 before the announcement. The Standard & Poor's 500 index gained 4.74 to 1,170.29.

Looking forward, "the market could go somewhat higher from here, but we have constraints on how high we go," Charles Pradilla, chief investment strategist at SG Cowen told CNNfn's Street Sweep. "Today's action is symptomatic of what we're going to be seeing for the next few weeks."

Also impacting stock action on Tuesday, Hewlett-Packard (HWP: down $0.37 to $18.43, Research, Estimates) shareholders finished casting their votes on the potential merger with rival Compaq Computer (CPQ: down $0.27 to $10.87, Research, Estimates). HP declared victory but dissident Walter Hewlett said the voting was too close to call. Official results won't be known for some time.

The vote and the dueling statements didn't fuel much action in the market, analysts said. "It was already priced into the market. I don't think either thing had much impact," Stephen Murphy, associate director at Institutional Direct told CNNfn's Street Sweep.

While the Fed move surprised few, what remains up for debate is at what point the Fed will begin moving toward a rise in rates. A number of analysts see this move as starting in May, while others are predicting it will be put off until late summer.

Should the Fed signal that it will begin moving toward a rise in rates, it would be the first time in nearly two years. The Fed began its aggressive rate-cutting campaign in January 2001 in an attempt to counter what many saw as a recession.

In other economic news Tuesday, the gap between U.S. exports and imports grew in January, the government said, a report that points to increased demand for goods but could potentially hurt growth in the first quarter.

Treasurys slid a little on the Fed news, with the ten-year note yield rising to 5.33 percent.

European and Asian markets both closed higher. The dollar was a little weaker versus the euro and modestly stronger against the yen. Light crude oil futures fell 9 cents to $25.35 in New York.

On the New York Stock Exchange, advancers topped decliners by more than an 8-to-7 margin as 1.18 billion shares changed hands. On the Nasdaq, winners edged losers as 1.44 billion shares traded.

The Nasdaq found strength in biotech and semiconductor equipment, while telecoms and networking issues were weaker.

Giving the Dow industrials a boost was news that Procter & Gamble (PG: down $0.36 to $89.58, Research, Estimates) expects to see double-digit growth in its third quarter and better-than-expected per share results, due to strong volume and cost reduction. IBM (IBM: down $1.19 to $106.30, Research, Estimates) also was stronger.

Network equipment maker ONI Systems (ONIS: up $0.14 to $5.95, Research, Estimates) warned that it will post a first-quarter loss of between 24 and 27 cents a share, while analysts expected a loss of 18 cents. Following the news, Robertson Stephens and other brokerages reduced their estimates on the company. ONI is in the process of merging with Ciena (CIEN: up $0.20 to $8.57, Research, Estimates).

Sector mate Juniper Networks (JNPR: up $0.43 to $11.74, Research, Estimates) also was under pressure on a Goldman Sachs note cutting earnings-per-share estimates for 2002 and 2003. Goldman cited the continued tough spending environment for telecoms.

Corixa (CRXA: down $0.17 to $6.50, Research, Estimates) was one of several biotechs trending higher. The firm said it will work with a unit of Johnson & Johnson (JNJ: down $0.68 to $64.81, Research, Estimates) to develop new tests for breast cancer.

Goldman Sachs (GS: down $0.06 to $90.99, Research, Estimates) reported first-quarter results of 98 cents per share, a sharp decline from the $1.40 a share earned a year earlier, but still better than what analysts were expecting.

Also helping brokerages was a note out of Banc of America Securities. The firm initiated coverage on Goldman Sachs with a "buy" and a $105 price target. The firm also initiated coverage on Merrill Lynch (MER: up $0.57 to $56.55, Research, Estimates) with a "strong buy" rating and a $70 price target.

Dollar General (DG: up $0.12 to $17.11, Research, Estimates) rose on news that the discount retailer had reported a fiscal fourth-quarter profit versus a loss in the same period a year earlier. The company also said 2002 earnings per share would show strong growth.

Shares of Gemstar-TV Guide (GMST: down $0.51 to $15.53, Research, Estimates) fell after Salomon Smith Barney downgraded the company's shares to "outperform" from "buy." The company publishes TV Guide and produces an interactive television programming guide. On Monday, the company said its co-president and co-chief operating officer resigned, and reported a fourth-quarter net loss.