Stock rebound loses traction
NEW YORK, Oct. 12 (UPI) -- New York stock markets slid Friday after the Bureau of Labor Statistics said the producer price index increased 1.1 percent August to September.
Core prices, which exclude food and energy items, held steady, but fuel costs rose 4.7 percent month to month after rising 6.4 percent in August.
Investors remain cautious despite the European Union winning the Nobel Peace Prize. A Standard & Poor's downgrade of Spanish debt this week has kept investors on edge.
In early afternoon trading, the Dow Jones industrial average lost 19.61 points or 0.15 percent to 13,306.78 after dropping 283.39 points Monday through Thursday.
The Nasdaq composite index, down 86.78 points in the previous four sessions, gave up 7.00 points or 0.23 percent to 3,042.41. The Standard and Poor's 500 index was down 5.81 or 0.41 percent to 1,427.03, on top of of the 28.09 points shed this week.
The benchmark 10-year treasury note rose 9/32 to yield 1.648 percent.
The euro rose to $1.2954 from Thursday's $1.2928. Against the yen, the dollar rose to 78.39 yen from 78.37 yen.
In Japan, the Nikkei 225 index shed 0.15 percent, 12.66 points, to 8,534.12.
In London, the FTSE 100 index dropped 0.62 percent, 36.43, to 5,793.32.
Producer price gains ease back
WASHINGTON, Oct. 12 (UPI) -- U.S. producer prices for finished goods rose in September but at a slower pace than August, the Bureau of Labor Statistics reported Friday.
Prices were up 1.7 percent, seasonally adjusted in August, making the 1.1 percent rise in September something of a relief. The August gain was the sharpest monthly increase in producer price inflation since June 2009.
A monthly price gain of 1.1 percent is still high for the year. Going back 12 months, the second highest monthly gain was 0.9 percent in September 2011. The next highest gain of the past 12 months was 0.4 percent in February.
On an annual basis, prices were up 2.1 percent in September from 2 percent in August. The annual inflation rate for producer prices, however, is significantly lower than the peak of the last 12 months, a 7 percent annual rise in September 2011.
Prices for finished goods in the energy sector provided most of the push in September, rising 4.7 percent after going up 6.4 percent in August.
Core prices, which exclude food and energy items, were flat in September. For goods still in production, called intermediate goods, prices rose 1.5 percent in September, after a 1.1 percent rise in August.
For raw materials, called crude goods, producer prices were up 2.8 percent, down from a 5.8 percent increase in August.
Industrial production rises in Europe
BRUSSELS, Oct. 12 (UPI) -- Europe's industrial production rose in August from July, the European Union statistical office Eurostat reported Friday.
Production was up 0.6 percent in the 17-member eurozone and 0.3 percent in the 27-member EU, the data branch of the European Commission said.
Production of durable consumer goods rose 3.9 percent in the eurozone and 2.4 percent the EU. Non-durable goods production also increased, climbing 1.3 percent in the eurozone and 1 percent in the EU.
Production of energy rose in the eurozone, up 0.9 percent. In the EU, it was up 0.3 percent.
Among the 22 countries from which data is available, production rose in 13 and fell in eight. In Ireland, industrial production was stable.
Oil supplies up by 1.7 million barrels
WASHINGTON, Oct. 12 (UPI) -- U.S. crude oil inventories rose by 1.7 million barrels last week, the U.S. Energy Information Administration said.
The agency said inventories climbed to 366.4 million barrels. Supplies of crude oil remain above the upper limit of the average range for this time of year.
Supplies of distillate fuels, which include home heating oil, fell by 3.2 million barrels to 120.9 million barrels, with inventories falling below the lower limit of the average range.
Stockpiles of gasoline fell by 500,000 barrels to 195.4 million barrels this week, remaining near the lower half of the average range.
Inventories of finished gasoline decreased while blending components rose, the agency said.
After a two-week break, the national average price of gasoline rose for the 12th week out 14, climbing by 4.6 cents to $3.85 per gallon.
The current average price is 43.3 cents more than the price in same week of 2011, the agency said.
The weekly inventory report was released late Thursday, delayed a day because of the Columbus Day holiday this week.
