Stocks End Mixed as Inflation Leaps; Bond Yields Ease

Stocks closes mixed as inflation returned to the highest levels in 13 years last month offsetting a boost from stronger-than-expected earnings from JPMorgan.

Stocks closed mixed Wednesday after a faster-than-expected reading for consumer price inflation offset the pre-market impact of stronger-than-expected third quarter earnings from JPMorgan Chase  (JPM) - Get JPMorgan Chase & Co. (JPM) Report.

The Dow Jones Industrial Average was down a half point at 34,377, while the S&P 500 rose 0.31% and the Nasdaq gained 0.77%. as benchmark 10-year note yields eased to 1.544%.

Headline CPI for the month of September was estimated to have risen 5.4% from last year, up from the 5.3% pace in August and near to the highest levels since 2008

On a monthly basis, inflation was up 0.4%, the BLS said, with both tallies coming in below Wall Street forecasts.

"CPI numbers continue to get a lot of attention, however, we believe the unusual, Covid-induced economic environment is contributing heavily to the spike in prices," said Marc Zabicki, director of research for LPL Financial. "We continue to believe that once economic supply and demand is brought back in balance, price pressures should subside."

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Apple  (AAPL) - Get Apple Inc. (AAPL) Report fell following reports that the tech giant may need to cut production of its signature iPhone 13 as result of the global semiconductor shortage.

JPMorgan fell despite stronger-than-expected third-quarter earnings Wednesday as investment banking fees from a record year for mergers and acquisitions powered the bank's bottom line.

AT&T  (T) - Get AT&T Inc. Report, slipped as investors continue to re-price the company's shift in focus from media assets to telecoms while adjusting to lower payout ratios ahead of its third quarter earnings.

Plug Power  (PLUG) - Get Plug Power Inc. Report shares jumped after analysts at Morgan Stanley upgraded the hydrogen fuel cell developer to 'outperform' and boosted their price target to $40 a share.

Oil prices eased from seven-year highs on demand concerns following a downgrade of global growth forecasts from the International Monetary Fund Tuesday and ahead of tomorrow's stockpile report from the Energy Department.

WTI futures for November delivery were off 7 cents at $80.57 per barrel while Brent contracts for December, the global pricing benchmark, fell 15 cents at $83.27 per barrel at last check.