Inflation warning hits U.S. stocks

NEW YORK, Oct. 6 (UPI) -- A Federal Reserve official's warning about inflation Thursday offset good corporate news to cut into prices on U.S. stock markets.

The Dow Jones industrial average was at 10,3285.98 after falling 31.38 points, or 0.30 percent on a volume of 1.2 billion shares. The Nasdaq dipped to 2,083.84 after dropping 19.18 points, or 0.91 percent, and the Standard & Poor's 500 reached 1,191.15 on a decline of 5.24 points, or 0.44 percent.

Traders warmed to Merck's experimental cancer vaccine and General Electric boosted its profit outlook. Also, crude oil fell below $62 per barrel.

But then Richard Fisher, president of the Dallas Fed, warned again of looming inflation, turning all indexes down.

The benchmark 10-year Treasury was off 2/32, or 63 cents per $1,000 invested, to yield 4.356 percent.

The dollar fell to 113.83 yen from 113.99 as the euro rose to $1.2066 from $1.1964.

Tokyo's Nikkei 225 collapsed, falling 330.38 points, or 2.41 percent, to close at 13,359.51, and London's FTSE 100 settled at 5,364.90 after falling 62.90, or 1.16 percent.