* Fed minutes indicate rate hike in 2015, but members differon month
* Mylan jumps after offering to buy Perrigo for about $29bln
* Indexes up: Dow 0.2 pct, S&P 0.3 pct, Nasdaq 0.8 pct (Updates with Fed minutes, changes byline)
By Ryan Vlastelica
NEW YORK, April 8 (Reuters) - U.S. stocks rose on Wednesday,but trading was volatile following the release of minutes fromthe U.S. Federal Reserve that indicated the central bankremained on track for a rate hike this year.
Major indexes initially fell after the release, as severalFed participants went on record saying they expected upcomingeconomic data would warrant an initial rate increase in June,which would be sooner than currently expected. Otherparticipants anticipate a hike later in 2015 due to recentstrength in the U.S. dollar.
Market participants had been expecting the first rate hiketo come in September or later, with the March payroll report,which came in sharply under expectations last week, pointing toslowing growth. The central bank has said it would only raiserates when data suggests the economy is strong enough towithstand it.
"Recent comments suggested that the Fed was moving moretowards September or later, based off some softer economicreports. June would come as a surprise," said Alan Gayle, seniorinvestment strategist and director of asset allocation atRidgeWorth Investments in Atlanta, Georgia. "If the Fed movesmonetary policy in an arbitrarily fast manner, that would be adetriment for stocks."
Fed officials acknowledged risks from overseas and a weakstart to the year at their March meeting but remained confidentin the strength of the recovery, the minutes showed.
Markets had been positive prior to the minutes, boosted bymerger activity in the healthcare sector, though the energysector was weak as crude oil plunged.
Mylan jumped 17 percent to $69.94 after the genericdrugmaker offered to buy Perrigo Co for about $29billion in cash and stock. Perrigo jumped 20 percent to $197.75. The two companies were the biggest gainers onthe S&P 500.
U.S. crude futures dropped 6.3 percent after U.S.Energy Information Administration data showed the largest weeklybuild in oil inventories since March 2001. Thenews offset Royal Dutch Shell's $70 billion bid forrival BG Group.
The S&P Energy index fell 0.7 percent while ExxonMobil lost 1.5 percent to $84.44 and Chevron Corp shed 1.5 percent to $106.86.
The Dow Jones industrial average rose 34.2 points, or0.19 percent, to 17,909.62, the S&P 500 gained 5.9points, or 0.28 percent, to 2,082.23 and the Nasdaq Composite added 37.68 points, or 0.77 percent, to 4,947.91.
Advancing issues outnumbered declining ones on the NYSE by1,888 to 1,093, for a 1.73-to-1 ratio on the upside; on theNasdaq, 1,727 issues rose and 958 fell for a 1.80-to-1 ratiofavoring advancers.
The benchmark S&P 500 index was posting 12 new 52-week highsand no new lows; the Nasdaq Composite was recording 67 new highsand 25 new lows. (Editing by Meredith Mazzilli)