Shares on Wall Street reverse early losses

NYSE traders Image copyright Reuters

(Close): US shares clawed back early losses to close higher after investors took a positive view on the latest comments from the US Federal Reserve.

The US central bank kept interest rates on hold and said economic conditions have improved.

The Dow Jones ended 51 points higher at 18,041, while the broader S&P 500 added 3 points to close at 2,091.

But the tech-heavy Nasdaq index closed 25 points lower at 4,863, dragged lower by a fall in Apple shares.

Apple fell 6% after it reported a 13% drop in second quarter revenue on Tuesday as sales of iPhones slipped.

Twitter shares dived 16% after its latest revenues missed expectations. First quarter revenues rose 36% to $594.5m, but this was below analysts' forecasts of about $608m.

Twitter also predicted revenues of $590m to $610m for the second quarter, which was far below analysts' expectations.

Shares in Dreamworks Animation jumped 18% after reports that Comcast is in talks to buy the company. Comcast shares rose 0.4%.

After the close of trading Facebook announced that net income tripled in the first quarter to $1.5bn.