US stocks open lower as consumer inflation disappoints

Gold adds 0.7% to $2,626 per ounce, silver gains 1.45% to $30.94; oil prices up around 1.4%

By Ovunc Kutlu

ISTANBUL (AA) - Major US stock exchanges opened on a lower note Thursday after consumer inflation figures came higher than market estimates and disappointed investors.

The Dow Jones industrial average fell 82 points, or 0.19%, to 42,429 as of 9.52 a.m. EDT (1352GMT). The S&P 500 was down 22 points, or 0.4% to 5,769.

The Nasdaq Composite, meanwhile, decreased 104 points, or 0.57%, to 18,186.

The consumer price index (CPI) annually rose 2.4% in September and came higher than market estimates of a 2.3% increase, according to data released by the Labor Department's Bureau of Labor Statistics before the market opening.

On a monthly basis, CPI showed an increase of 0.2% in September and also came higher than market expectations of a 0.1% gain.

Core CPI, which excludes volatile food and energy prices, gained 0.3% in September from the previous month, also coming in higher than market estimates of 0.2%. Annually, core CPI climbed 3.3% in September -- higher than market expectations of 3.2%.

The VIX volatility index, referred to as the "fear index," rose 1.5% to 21.18. The 10-year US Treasury yield rose 0.34% to 4.082%.

The US dollar index decreased 0.03% to 102.90, while the euro rose 0.04% against the dollar, trading at $1.0943.

Precious metals were in positive territory, with gold adding 0.7% to $2,626 per ounce and silver increasing 1.45% to $30.94 an ounce.

Oil prices were up around 1.4%, with global benchmark Brent crude at $77.67 per barrel and US benchmark West Texas Intermediate at $74.22 per barrel.

Kaynak:

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