Stocks drop, bond yields rise as CPI inflation holds steady: Stock Market October 12 | Yahoo Finance

Stocks were lower on Thursday as bond yields tracked higher and investors digested an inflation report that showed headline inflation has remained sticky while some areas tracked by the Federal Reserve have continued cooling.

The Dow Jones Industrial Average (^DJI) dropped about 0.2%, while the S&P 500 (^GSPC) fell 0.1%. The tech-heavy Nasdaq Composite (^IXIC) edged up 0.1%.

Thursday's Consumer Price Index (CPI) report showed headline inflation held steady in September with prices increasing at a slightly faster pace than economists expected. Consumer prices rose 3.7% over last year in September, matching August's increase. On a month-over-month basis, consumer prices rose 0.4%.

Yields on both the 10-year and 30-year Treasury were higher on Thursday. After several days of declines, the 30-year Treasury yield climbed to 4.85%.

Stocks had been coming off their fourth winning session in a row on Wednesday as investors shrugged off hotter-than-expected wholesale inflation data.

Eyes were also on the third quarter earnings season. Delta (DAL) stock was off nearly 2% as the company trimmed its profit outlook due to rising fuel prices. Next up on the earnings docket will be some of the nation's largest financial institutions, with JPMorgan (JPM) Citi (C), Wells Fargo (WFC), and BlackRock (BLK) all expected to report on Friday.

In commodities, oil prices erased their recent drop after a show of unity by Russia and Saudi Arabia, which have committed to extra cuts in crude output. But the market mood remains fragile as Israel builds up forces for an expected ground assault on Gaza. Crude oil futures (CL=F) rose to around $84 a barrel, while Brent crude futures (BZ=F) climbed to trade closer to $87.

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