U.S. stocks edge higher amid Fed meeting

U.S. stocks rose in the early session on Tuesday, as investors waited the outcome of the Federal Reserve meeting and news on Greece's debt talks.

At noon, the Dow Jones Industrial Average increased 82.12 points, or 0.46 percent, to 17,873.29. The S&P 500 gained 6.73 points, or 0.32 percent, to 2,091.16. The Nasdaq Composite Index edged up 13.02 points, or 0.26 percent, to 5,042.99.

The Fed kicks off its two-day meeting Tuesday. While it is unlikely to raise interest rates at this meeting, investors will still follow closely the central bank's statement and Fed Chair Janet Yellen's news conference for clues on the timing of a possible rate hike.

Traders will also pay close attention to officials' views on the U.S. economy. The Fed has said it will raise rates only when it sees an improvement in the economy.

On the economic front, privately-owned housing starts in May were at a seasonally adjusted annual rate of 1.036 million units, decreasing 11.1 percent from the revised level of the previous month, the Commerce Department said Tuesday.

Hopes for a deal now shift to Thursday's Eurogroup meeting in Luxembourg, which many believe is the last chance before Greece's EU bailout expires by the end of June.

Athens doesn't have plans to present new proposals at that meeting, Greek Finance Minister Yanis Varoufakis told a German newspaper, despite warnings from the rest of Europe that time is running out.

U.S. stocks continued to drop Monday as breakdown in Greece bailout talks weighed on market sentiment. Enditem