* Apple rises after Goldman adds to “conviction buy” list
* Fairchild Semiconductor up after buyout offer
* Fed minutes for Oct. meeting expected at 2 p.m. ET
* Indexes up: Dow 0.53 pct, S&P 0.50 pct, Nasdaq 0.51 pct (Adds details, comment, updates prices)
By Abhiram Nandakumar
Nov 18 (Reuters) - Gains in Apple shares and healthcare stocks boosted Wall Street on Wednesday as investors awaited the release of minutes from the Federal Reserve’s October meeting that were likely to underpin expectations of an interest rate hike next month.
Apple’s shares were up 3 percent at $117.07 after Goldman Sachs added the iPhone maker to its “conviction buy” list, saying it sees potential for the stock gaining as much as 43 percent from current levels.
The stock provided the biggest boost to the three major indexes, accounting for nearly a fifth of the Dow’s gains.
Investors, however, remained cautious due to heightened security concerns after last week’s deadly attacks in Paris.
“All eyes are on the Fed, while geopolitical concerns remain on the minds of the investors,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
The minutes of the Fed’s meeting, due at 2:00 p.m. ET (1900 GMT), will give investors clues on the central bank’s reading of the economy.
Investors widely expect the central bank to raise rates in December, but remain uncertain about the magnitude of the increase and the timing of further hikes.
“Until they start to get some clarity on that, you’ll just see the ‘little bit up, little bit down’ type of trading range that we’re in right now,” said Dan Farley, regional investment strategist at U.S. Bank Wealth Management in Minneapolis.
Data on Wednesday showed U.S. housing starts fell to a seven-month low, but a surge in building permits suggested the housing market remained on solid ground.
Lowe’s shares were up after its earnings beat expectations, but reversed course and were down 1.5 percent to $71.76. Home Depot was down 1 percent to $124.92.
At 10:56 a.m. ET, the Dow Jones industrial average was up 93.53 points, or 0.53 percent, at 17,583.03, the S&P 500 was up 10.24 points, or 0.50 percent, at 2,060.68 and the Nasdaq Composite index was up 25.64 points, or 0.51 percent, at 5,011.65.
Eight of the 10 major S&P sectors were higher, led by a 1.03 percent rise in the healthcare sector. Allergan and Gilead gave the biggest boost to the sector.
Target fell nearly 6 percent to $68.62 as disappointing digital sales overshadowed raised full-year profit forecast.
Fairchild Semiconductor jumped 8.7 percent to $19.43 after On Semiconductor said it would buy the company for $2.4 billion. On Semiconductor fell 9.2 percent to $9.77.
Qualcomm dropped 7.6 percent to $48.93 after a South Korean regulator alleged the chipmaker violated the country’s competition law.
Advancing issues outnumbered decliners on the NYSE by 1,885 to 982. On the Nasdaq, 1,441 issues rose and 1,146 fell.
The S&P 500 index showed eight new 52-week highs and three new lows, while the Nasdaq recorded 22 new highs and 67 new lows. (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Saumyadeb Chakrabarty)