MARKET SNAPSHOT: U.S. Stocks Edge Higher After Fed Statement

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks turned modestly higher after the Federal Reserve said it remained confident the economic recovery would strengthen yet inflation would remain contained.

Fed officials said they expect to raise short-term interest rates a bit faster in 2015 and 2016 than previously forecast, and announced no changes to the strategy of tapering monthly bond purchases by $10 billion.

The S&P 500 (SPX) added 6 points, or 0.3%, to 1,947.81. The Dow Jones Industrial Average (DJI) rose 22 points, or 0.1% to 16,930.33. The Nasdaq Composite (RIXF) gained 5 points, or 0.1%, at 4,342.94.

Follow MarketWatch's live blog of today's stock-market action.

The Federal Open Markets Committee wrapped up the second day of its meeting and released a statement, which remained similar to the previous one. Fed Chairwoman Janet Yellen, answering questions at a press conference, said the Fed will look at a "wide range of indicators" on the labor market before deciding to raise rates.

Speaking about the markets, Yellen said the Fed is watching for complacency in the markets that would promote too much risky behavior.

Follow the live blog of Janet Yellen's press conference here.

Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank, said the Fed statement was as expected and therefore sparked little reaction in the stock market. "The Fed is not concerned with an uptick in inflation rate, because central banks know how to fight inflation, but they do not know how to fight deflation," he added.

* In corporate news, Amazon.com Inc. Chief Executive Jeff Bezos unveiled the company's first smartphone at an event in Seattle. Amazon shares rose 2.8%.BlackBerry Ltd. shares rose 1.9% after the company announced a partnership with Amazon on Wednesday. that would give the smartphone maker access to Amazon's Appstore. Shares of FedEx Corp. rose 5.5% after the parcel-delivery company's quarterly earnings and sales topped analysts' expectations.Adobe Systems Inc. leapt 7.9% after the company late Tuesday reported better-than-expected adjusted earnings.But La-Z-Boy Inc. shares slid 8.7% as the furniture maker's fourth quarter same-store sales fell 0.9%, compared with a 11.2% rise in the fourth quarter of last year.ConAgra Foods Inc. shares declined 7.1% after the packaged-food company said fiscal fourth-quarter earnings will miss expectations, as volume in its consumer foods segment declined 7% and its private brands unit posted weak profits.

* In overseas markets, Japanese stocks rose, outperforming other benchmarks throughout the region. European stocks wavered ahead of the Fed decision. Minutes from the Bank of England's meeting earlier this month, released Wednesday, signaled policy makers are moving closer to raising U.K. rates before year's end.

* Among commodities, gold for August delivery ticked up $1.3 to $1,273.3 an ounce. Crude oil futures slipped 25 cents to $106.11.

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