Wall Street opens higher as US Fed minutes awaited

NEW YORK (REUTERS) - Wall Street opened with a second day of gains on Wednesday as oil prices edged up slightly, and investors awaited the minutes of Federal Reserve's December meeting in which it raised interest rates.

The Fed cited strength in the labour market and a slight uptick in inflation among reasons for its move. Investors will pore over the minutes to assess policymakers' view on the incoming administration.

The minutes of the Dec. 13-14 meeting are expected at 2:00 p.m. ET (3 am Thursday morning Singapore time).

With just over two weeks left before President-elect Donald Trump takes office, investors are waiting for the finer details of his proposed policies such as tax cuts and higher fiscal spending.

Some analysts have warned of a potential correction in a post-election rally, which has helped the Dow Jones Industrial Average to come within a hair's breadth of 20,000.

"I think the market has gotten ahead of itself and is probably primed to give something back," said Robert Pavlik, chief market strategist at Boston Private Wealth.

The S&P 500 is trading at 17.5 times forward 12-month earnings, well above the 10-year median of 14.7 times, according to Thomson Reuters data.

The S&P 500 Index added 0.4 per cent at 2,266.5 at 9:41 a.m. in New York. The benchmark rose 0.9 per cent on Tuesday, its biggest gain in almost a month, as the Dow Jones Industrial Average closed within 120 points of the 20,000 level. The Dow added 50 points to 19,932 Wednesday.