By Kate Gibson, MarketWatch NEW YORK (MarketWatch) -- U.S. stocks edged higher on Monday as Wall Street mulled the outcome of the Federal Reserve's policy setting meeting in the wake of recent economic reports that signal the recovery is slowing. "It's the dichotomy between stronger earnings but a weaker economy, with all eyes on the Fed announcement and will they push the panic button on deflation in their wording," said Jay Suskind, senior vice president at Duncan-Williams Inc. See full story. The Dow Jones Industrial Average (DJIA 10,686, +32.32, +0.30%) climbed 32.47 points to 10,686.03, with 23 of its 30 components rising, led by Cisco Systems Inc. (CSCO 24.50, +0.43, +1.79%) , up nearly 2% ahead of the networking-gear maker's quarterly report on Wednesday. Read about ramped up spending on technology. Conversely, shares of Hewlett-Packard Co. (HPQ 42.75, +0.90, +2.15%) fell the most, off 7.8% in the first day of trade after CEO Mark Hurd's abrupt ouster on Friday. See details about allegations involving expense reports and former contractor. Shares of McDonald's Corp. (MCD 72.89, +1.15, +1.60%) also bolstered the Dow after the fast-food giant reported its largest monthly jump in sales in more than a year. The S&P 500 Index (SPX 1,125, +3.10, +0.28%) rose 3.36 points to 1,125, with telecommunications companies faring the best and financials performing the worst among its 10 industry groups. The Nasdaq Composite (COMP 2,297, +8.72, +0.38%) gained 8.99 points to 2,297.45. For every stock on the decline nearly two were rising on the New York Stock Exchange, where 941 million shares traded as of 11 a.m. The Fed on Tuesday afternoon delivers its latest assessment of the economy, with some investors wondering if the central bank might restart stimulus programs in an effort to help the recovery in the wake of recent economic reports pointing to a slowdown.

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