Crude oil briefly shot past US$130 (S$176) a barrel for the first time, then retreated to US$129.51 in the normal push and pull of trading.

Investors appeared hesitant ahead of government data that is expected to show that crude oil inventories rose last week for the fifth straight week. The Energy Department publishes its weekly petroleum inventory data at 1430 GMT (10.30pm Singapore time).

Wall Street was also awaiting minutes from the Federal Reserve's April 29-30 meeting, which should provide more insight into whether policymakers regard rising energy prices as a serious threat. The Fed cut its benchmark federal funds rate by a quarter-percentage point to 2 per cent at that meeting, marking the seventh cut in an easing cycle that started in September. Its accompanying economic statement left open the possibility of an end to rate cuts.

In morning trading, the Dow Jones industrial average slipped 1.38, or 0.01 per cent, to 12,827.30, after rising in earlier trading. The Dow lost nearly 200 points on Tuesday amid concerns about rising oil prices and inflation.

Broader stock indicators advanced modestly. The Standard & Poor's 500 index rose 3.06, or 0.22 per cent, to 1,416.46, and the Nasdaq composite index rose 9.63, or 0.39 per cent, to 2,501.89.

Bond prices edged lower early on Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its yield, rose to 3.81 per cent from 3.78 per cent late on Tuesday.

The dollar was mixed against other major currencies.

In corporate news, media conglomerate Time Warner and cable television arm Time Warner Cable said their boards approved the companies' legal separation. Time Warner Cable expected to pay a hefty US$10.9 billion one-time dividend to shareholders. Time Warner shares rose 38 cents, or 2.4 per cent, to US$16.53.

Hewlett-Packard reported late on Tuesday that second-quarter profit rose 16 per cent, saying strong growth abroad offset some weakness in the US. But with concerns remaining about the computer and printer maker's growth potential and its planned buyout of technology services provider Electronic Data Systems Corp, HP shares fell 91 cents, or 2 per cent, to US$45.55.

BJ's Wholesale Club, the third-largest US warehouse club operator, posted higher first-quarter profit. The company said customers were attracted to discounts on both food and fuel. Its shares, however, slid 77 cents, or 2 per cent, at US$38.08.

General Motors' string of labour problems could soon come to an end with a tentative agreement at a key assembly plant in Kansas City. GM reached the deal on a local contract with United Auto Workers Local 31 at the plant Tuesday evening, company spokesman Dan Flores said. GM was down 3 cents at US$19.83.

The Russell 2000 index of smaller companies rose 5.33, or 0.72 per cent, to 740.97. -- AP