By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Energy stocks sell off as oil slide resumes

NEW YORK (MarketWatch) -- Early morning gains on Wall Street fizzled out Wednesday as investors looked past the blowout earnings from Apple Inc. and turned their attention to the Federal Reserve's policy-setting meeting.

The Federal Open Market Committee meeting will issue a statement on monetary policy at 2 p.m. Eastern. Analysts do not expect the Fed to make any major changes to the current policy.

The Nasdaq Composite (RIXF) was modestly higher, thanks to big gains in Apple, its heaviest-weighted stock. Apple's earnings results surprised even the most bullish analysts as the tech giant reported $18 billion profit in the latest quarter.

The S&P 500 (SPX) was nearly flat as big gains in the tech sector were offset by even bigger losses in energy stocks.

The Dow Jones Industrial Average (DJI) switched between small gains and losses with half of its components trading lower. Boeing Co (BA) was the top gainer, while Chevron (CVX) and Exxon Mobil Corp (XOM) were the laggard.

Andrew Nyquist, founder of financial blog "See It Market," wrote that a mixed bag of highs and lows in earnings season hasn't helped a market that is fixated on growth.

"The markets could get some help from the Fed today. It still feels a bit unsettled as investors will likely need to see some additional constructive economic data. I think the higher dollar has spooked some as well. Investors want some assurance that the stronger dollar isn't hurting the economy or earnings," Nyquist wrote.

Colin Cieszynski, chief market analyst at CMC Markets, wrote: "While the Fed has historically focused more on domestic needs than overseas trends when setting monetary policy, Tuesday's data highlight the central bank is in a bit of a spot right now."

Goldman Sachs and others expect the first hike in short-term interest rates by September. But Ellen Zentner, an economist at Morgan Stanley, said Tuesday that she doesn't expect a Fed hike until March 2016, partly because the downward pressure on inflation is stronger than expected.

A strong dollar, which has been cutting into corporate earnings, and weak oil prices have investors hoping the Fed will delay that hike, and they will be looking for a signal to support that from the statement.

Doubts grow about midyear rate hike, but Fed won't express any

Apple earnings: Apple shares jumped 7% after the company reported another record for its flagship iPhone, with 74.5 million phones sold in the fiscal first quarter. Profit rose 38% to a record high.

Also read: This is what Apple analysts are worried about

Yahoo, Boeing in focus: Shares of Boeing (BA) gained after the company's fourth-quarter earnings beat forecasts.

Yahoo Inc. (YHOO) jumped after the Internet search engine late Tuesday said it would spin off its Alibaba Group Holding Ltd. (BABA) stake into a separate publicly traded company.

U.S. Steel Corp. (X) jumped after the steel producer's earnings topped Wall Street estimates.

Abiomed Inc. (ABMD) surged 32% after the medical device maker posted earnings that blew out Wall Street estimates.

On the downside, Ethan Allen Interiors Inc. dropped sharply after releasing weaker-than-expected results from its holiday quarter.

Energy companies were selling off as oil prices fell more than 2% again. On the S&P 500 top five decliners were in the energy sector. Denbury Resources (DNR) and Cabot OIl & Gas Corp (COG) were down more than 7%.

Shake Shack Inc. (SHAK) raised the terms for its initial public offering and said it would offer 5.75 million shares to be priced at $17-$19 a share.

Overseas markets: Europe stocks were mixed, with Greece suffering from another selloff after Prime Minister Alexis Tsipras stressed he will push for debt relief from the country's international creditors.

The Nikkei 225 index rose to a fresh one-month high.

Crude-oil prices (CLH5) fell $1 to $45.20 a barrel, as another investment bank downgraded its forecast for the commodity. Barclays cut its forecasts for WTI crude to $42 a barrel for 2015 from $66 and $57 a barrel for 2016. For Brent crude, Barclays cut its forecast to $44 a barrel for 2015 from $72 and forecast $60 for 2015.

Gold prices (GCG5) drifted lower ahead of the FOMC meeting.

Sara Sjolin in London contributed to this article.

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