U.S. MARKET AVERAGES

U.S. stock futures are trading mixed Wednesday as investors prepare to digest consumer price index data. Homebuilder D.R. Horton is expected to bring some relief to market sentiment, releasing lifted earnings forecast for the next year.

Dow Jones futures were recently down 3 points, S&P 500 futures were up 0.50 of a point, and Nasdaq 100 futures were off 0.50 of a point.

Inflation worries on consumer spending eased down significantly last month as energy prices retreated from record highs. The Labor Department reported that consumer prices edged up just 0.2% in October, which was the best showing in four months. In September, consumer prices had soared by 1.2%, the biggest one-month increase in 25 years.

Markets also will be looking for data from the energy sector, with crude contracts holding below $57 a barrel in anticipation of a report showing the first rise in distillate inventories in eight weeks.

ECONOMIC NEWS

The Department of Labor released its closely watched report on consumer prices in the month of October on Wednesday, showing that prices rose modestly after surging higher in the previous month.

The report showed that consumer prices rose by 0.2 percent in October following a 1.2 percent increase in September. Economists had been expecting a slightly more modest increase of about 0.1 percent.

The significant slowdown in the pace of price growth compared to September came as energy prices fell 0.2 percent in October after surging up a record 12 percent in the previous month. Transportation prices also showed a notable decrease.

The report also showed that core consumer prices, which exclude food and energy prices, rose 0.2 percent in October after rising 0.1 percent in each of the five previous months. The increase in core prices came in line with economist estimates.

The modest increase in core prices suggests that the increase in energy prices is not being passed on in the prices of other products. Subsequently, core inflation has remained relatively subdued, rising at an annual rate of 2.1 percent.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks advanced to close higher as the Japanese Nikkei rose 0.6%, rebounding from two-day losses and reaching a four-year record high of 14,170,087 on stronger dollar , exporter issues and financial stocks buy-back. Across the region, South Korea’s Kospi climbed 1.1% on surging Korean Exchange Bank, Hong Kong’s Hang Seng gained 0.2%, and Singapore Straits Times added 0.6%.

European markets traded lower at mid-day, pressured by U.S. stock markets, weaker resource stocks and earnings from the German power giant RWE, and Swiss Adecco. The German DAx 30 lost 0.8%, the French CAC 40 shed 0.9%, and London’s FTSE 100 fell 0.7%.

OIL, METALS, CURRENCIES

Crude oil traded below $57 a barrel after slipping to a four-month low yesterday ahead of petroleum inventory report. Light sweet crude December delivery lost 19 cents to $56.79 a barrel. Heating oil traded at $1.6831 a gallon. Gasoline rose marginally to $1.4605. Natural gas gained 5 cents to $11.61 per 1,000 cubic feet. London Brent fell 23 cents to $54.95.

Gold prices advanced in European trading. In London the precious metal was fixed at $470.65 per troy ounce, up from $467.90. In Zurich gold advanced to $470.35 from $466.95. In Hong Kong gold rose $4.40 to close at $472.65. Silver traded at $7.72, up from $7.70.

The U.S. dollar traded higher against other major currencies. The euro was quoted at $1.1687, up from $1.1694. The dollar bought 119.42 yen, up from 118.99. The British pound traded at $1.7269, down from $1.7343.

EARNINGS NEWS

Charming Shoppes, Inc. (CHRS: chart), apparel retailer, announced that Q3 net profit soared 70% to 9 cents a share, from the comparable period last year, topping the analysts’ forecasts by a penny. Sales rose 22%. The company envisages Q4 earnings between 13 cents and 14 cents a share on same-store sales up 2% to 4%.

Tyco International (TYC: chart), industrial conglomerate, reported Q4 net income rose to 44 cents a share, double from 22 cents a share in the year-ago period on lower restructuring and divestiture charges at its fire and security division. Revenue was up 2% on a comparable basis. Earnings from continuing operations totaled 42 cents a share but missed analyst expectations of 46 cents a share.