US Equities Markets End Higher Wednesday as Investors Parse CPI Data

MT Newswires Live11-14

US benchmark equity indexes ended higher Wednesday after official data showed consumer inflation in October rose in line with Wall Street's expectations.

* The US consumer price index increased 0.2% last month, the same as it did July through September, the Bureau of Labor Statistics reported. Annually, inflation accelerated to 2.6% from September's 2.4% pace.

* "Progress on the inflation front has slowed to a snail's pace in recent months as services inflation is looking increasingly sticky, while much of the disinflationary pressure from falling goods prices is now in the rear-view mirror," TD Economics said in a note. "All of this suggests that the last leg lower on returning inflation to the (Federal Reserve's) 2% target is going to occur much more gradually."

* The odds of policymakers lowering their benchmark lending rate by 25 basis points next month jumped to 82% on Wednesday from 59% Tuesday, according to the CME FedWatch tool. The remaining odds are for interest rates to remain unchanged.

* December West Texas Intermediate crude oil closed down $0.03 to settle at $68.09 per barrel, while January Brent crude, the global benchmark, was last seen up $0.09 to $71.98.

* Southwest Airlines (LUV) Chief Executive Officer Bob Jordan told Bloomberg that he "wouldn't be surprised" if Boeing (BA) is unable to meet delivery commitments next year. Southwest Airlines shares rose 1.2% and Boeing fell 3.6%.

* Rivian Automotive (RIVN) shares jumped 14% after Germany's Volkswagen boosted its investment in a joint venture with the Irvine, California-based auto manufacturer to $5.8 billion from $5 billion.

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