Wall St mixed as inflation data backs bets of 25 bps rate cut in November
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September CPI data higher than expected
Delta Air Lines down after Q3 results
Energy stocks track oil prices higher
Banks to kick off Q3 earnings season on Friday
Indexes: Dow down 0.08%, S&P 500 flat, Nasdaq up 0.18%
Updated at 12:07 pm ET/1607 GMT
By Lisa Pauline Mattackal and Pranav Kashyap
Oct 10 (Reuters) - Wall Street's main indexes struggled for direction on Thursday, but pared some early losses after a hotter-than-expected inflation reading kept expectations for a 25-basis-point rate cut by the Federal Reserve in November alive.
The closely watched Consumer Price Index rose 0.2% on a monthly basis in September and 2.4% on an annual basis, with both figures being slightly higher than estimated by economists polled by Reuters.
The core figure, which excludes volatile food and energy prices, rose 3.3% year-over-year, versus an estimate of 3.2%.
The Dow Jones Industrial Average .DJI fell 33.06 points, or 0.08%, to 42,478.58, the S&P 500 .SPX gained 1.29 points, or 0.02%, to 5,793.30 and the Nasdaq Composite .IXIC gained 33.23 points, or 0.18%, to 18,324.84.
The Russell 2000 .RUT, which tracks economically sensitive small-cap stocks, dipped 0.8%%.
Rate-sensitive sectors fell, with Real Estate .SPLRCRlosing 0.7%,while Energy stocks .SPNY outperformed other sectors and was up 1%, as oil prices jumped. O/R
A 0.2% gain in Technology stocks .SPLRCT, notably a 1.7% rise in chip bellwether Nvidia NVDA.O, helped the tech-heavy Nasdaq Composite outperform the other two indexes.
After the inflation data was released, traders firmed bets on a 25-bps cut in November at 89%, according to CME's FedWatch.
"What you're seeing here is a bounce in prices that could push another rate cut back - but we got the other side of the coin, which was a little warmer unemployment number as well," said Brian Mulberry, portfolio manager at Zacks Investment Management.
Jobless claims also rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000.
Meanwhile, Delta Air Lines DAL.N lost 0.6%, paring some earlier losses after forecasting quarterly revenue below expectations in anticipation of slower travel spending.
Other airlines also lost ground, with American Airlines AAL.O losing 1%.
Equity market performance has been largely led by expectations for easing monetary policy, with traders now scrutinizing how much further the U.S. central bank will lower borrowing costs this year.
Among other single movers,shares of Pfizer PFE.N fell 2.3% as former executivesdistanced themselves from activist investor Starboard's campaign against the drugmaker.
Both theS&P 500 .SPX and the Dow notched up record closing highs on Wednesday.
"There's going to be a lot of volatility between now and the end of the year... any wobble in the labor (market) or bounceback in inflation will be a real concern," Mulberry said.
The start of the third-quarter earnings season is also in focus,with major banks scheduled to report results on Friday.
The third-quarter earnings growth rate for the S&P 500 is estimated at 5% year-over-year, according to estimates compiled by LSEG.
Chicago Fed President AustanGoolsbee said he sees "gradual" rate cuts over the next year-and-a-half, while the New York Fed'sJohn Williams said he still sees rate reductions ahead.
Investors also monitored theimpact from Hurricane Milton, which made landfall on Florida's west coast late on Wednesday.
Declining issues outnumbered advancers by a 1.43-to-1 ratio on the NYSE, and by a 1.68-to-1 ratio on the Nasdaq.
The S&P 500 posted 22 new 52-week highs and two new lows, while the Nasdaq Composite recorded 45 new highs and 122 new lows.
Reporting by Lisa Mattackal and Pranav Kashyap in Bengaluru; Editing by Pooja Desai
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