US stocks edge higher in early trading; China shares rebound

Stocks posted modest gains Wednesday, as Chinese shares rebounded and traders wait to hear from the Federal Reserve.

KEEPING SCORE: The Dow Jones industrial average rose 25 points, or 0.1 percent, to 17,656 as of 9:50 a.m. Eastern. The Standard & Poor's 500 index rose three points, or 0.1 percent, to 2,096 and the Nasdaq composite rose a point to 5,089.

FED MEETING: Fed policymakers will finish a two-day meeting Wednesday afternoon. Expectations are that the nation's central bank will not raise interest rates at this meeting and will wait until September or December. The Fed will release its policy statement at 2 p.m. Eastern time.

ASIA'S DAY: China's Shanghai Composite Index rebounded 3.4 percent to close at 3,789.17 after flitting between gains and losses for most of the day. Alarm over the sharp fall in Chinese shares has abated somewhat after the Shanghai index steadied following Monday's 8.5 percent dive.

TWITTER SINKS: Twitter dropped $5.05, or 14 percent, to $31.47. While the company's quarterly results exceeded Wall Street's forecasts, newly-appointed CEO Jack Dorsey said its turnaround will take some time. Dorsey said the company isn't satisfied with how fast its audience is growing.

CHECK OUT: MasterCard shares fell $1.07, or 1 percent, to $94.04 after the payment processing company's quarterly revenue missed analysts' expectations and the company warned that the strong U.S. dollar was going to continue to weigh on their results.

ENERGY: Benchmark U.S. crude was down 27 cents to $47.71 a barrel on the New York Mercantile Exchange.

BONDS, CURRENCIES: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.27 percent from 2.25 percent. The euro fell to $1.1033 from $1.1068. The dollar rose to 123.70 Japanese yen from 123.57 yen.