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Market Update

U.S. Indexes Retain Upward Bias, CPI Rises 0.1%

Author: Nichole Harper
Last Update: 12:13 PM ET October 22 2014

12:05 PM New York Stocks on Wall Street retained upward momentum after consumer price index increased 0.1% in September. The sharp decline in energy price for the third month in a row. European markets gained on the expectations that the ECB is likely to announce more measures to stimulate the economy.

Stocks on Wall Street traded higher after the latest data on the reported consumer price index were below the Fed target.

Consumer price index increased 0.1% in September after falling 0.2% in August, the Labor Department reported Wednesday.

Core price index, which exclude volatile food and energy, also increased 0.1% after showing no gain in August.

However, inflation experienced by most families is substantially higher than the inflation index reported by the government. Most families are experiencing inflation of more than 5% when prices are adjusted for the healthcare and education costs.

Food costs gained 0.3% and increased 3% over the last twelve months, largely on the account of drought conditions in several regions in the country. Energy prices fell 0.7%, the third monthly decline in a row.

The sharp drop in oil price has given consumers a big break while shopping for gasoline. The AAA earlier reported that the nationwide average for gasoline fell to $3.09 a gallon, 25 cents fall in the past one month.

S&P 500 index increased 3.84 or 1,945.11 and the Nasdaq Composite Index gained 9.11 to 4,428.54.

European Markets

In London trading, FTSE 100 index rose 0.3% or 16.93 to 6,389.26 and in Frankfurt the DAX index increased 0.6% or 49.49 to 8,936.45.

In Paris, CAC 40 index gained 0.5% or 18.75 to 4,099.99.

British American Tobacco Plc declined 3.4% to 3,349.50 pence after the U.K.-based cigarettes maker said revenue in the first nine months ending in September declined 9.6% and cigarette volume from subsidiaries slid 1% to 495 billion.

Daimler AG gained 1.1% to 59.98 and the Germany-based automobile parts maker sold its stake of 4% in the U.S.-based electric car maker Tesla Motors Inc. for $780 million.

Asian Markets

Market indexes in Tokyo advanced following the gains in New York and European markets and the yen eased.

The Ministry of Finance said merchandise trade deficit in September rose 1.6% to 958.33 billion yen compared to 943.25 billion yen in the same month a year ago.

Exports climbed 6.9% to 6.383 trillion yen from 5.970 trillion yen a year ago month while imports jumped soared 6.2% to 7.341 trillion yen compared to 6.914 trillion yen in September 2013.

The Nikkei 225 Stock Average climbed 391.49 or 2.6% to 15,195.77 and the broader Topix index jumped 31.05 or 2.6% to 1,236.41.

The yen closed at 106.97 against one dollar.

The Sensex Index climbed 211.58 or 0.8% to close at 26,787.23 The CNX Nifty rose 68.15 or 0.9% to 7,995.90.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc