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CPI rises 0.2% in October as forecast

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Rivian soars after Volkswagen increases investment

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Spirit Airlines ( SAVE ) plummets after report says preparing for

bankruptcy filing

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Indexes: Dow up 0.44%, S&P 500 up 0.22%, Nasdaq down 0.01%

(Updated at 11:52 a.m. ET/1652 GMT)

By Purvi Agarwal and Lisa Pauline Mattackal

Nov 13 (Reuters) - The S&P 500 and the Dow edged higher

on Wednesday after in-line consumer price inflation data kept

the U.S. Federal Reserve on track to deliver another interest

rate cut in December.

The consumer price index rose 0.2% in October for the fourth

straight month, the Labor Department's Bureau of Labor

Statistics said, and advanced 2.6% on an annual basis. Excluding

the volatile food and energy components, the CPI increased 0.3%

in October. The numbers were in line with economists' forecasts.

"With inflation holding steady, the market narrative should

not see a significant shift as a result of today's data," said

Josh Jamner, investment strategy analyst at ClearBridge

Investments.

Expectations for a 25-basis point interest rate cut at the

Fed's December meeting jumped to more than 82% after the data,

from around 58%, according to CME FedWatch.

Minneapolis Fed President Neel Kashkari said in an interview

with Bloomberg TV he was confident inflation was headed down,

noting that the CPI data "confirms" that downward path.

The Dow Jones Industrial Average rose 193.95 points,

or 0.44%, to 44,104.93, the S&P 500 gained 13.05 points,

or 0.22%, to 5,997.18, and the Nasdaq Composite lost

1.86 points, or 0.01%, to 19,279.54.

The benchmark 10-year Treasury yield eased

slightly on the day, but was still above the 4.4% mark after

rising on expectations that President-elect Donald Trump's

policies could exacerbate inflation.

Rising yields had pressured the three major Wall Street

indexes to close lower on Tuesday.

"The market's up about 5% since the election ... if you have

(such a gain) you just have to expect you're going to get some

sort of a pullback," said David Lundgren, chief market

strategist at Little Harbor Advisors.

Communication services stocks declined 0.4%,

weighed down by Alphabet shares that were down 1.2%.

Rate-sensitive small-cap companies tracked by the Russell

2000 index jumped 0.6%, while the real estate sector

and consumer discretionary stocks rose about

1% each.

Financial stocks such as Goldman Sachs ( GS ) and JPMorgan

Chase ( JPM ) were among the biggest boosts to the blue-chip

Dow.

Despite the declines on Tuesday, Wall Street has been

largely upbeat over the past few days, expecting Trump's

pro-business stance and possible tax cuts to buoy corporate

growth, even as some worries remain over higher tariffs and

inflation.

Spirit Airlines' ( SAVE ) shares plunged 56% after a report

the U.S. carrier is preparing to file for bankruptcy protection,

while the company said it is in talks with creditors.

EV maker Rivian soared 16.7% after Volkswagen

on Tuesday raised its investment in the company by

16% to $5.8 billion.

Fed officials Alberto Musalem and Jeffrey Schmid are

scheduled to speak later in the day.

Advancing issues outnumbered decliners for a 1.51-to-1 ratio

on the NYSE. Declining issues outnumbered advancers for a

1.01-to-1 ratio on the Nasdaq.

The S&P 500 posted 52 new 52-week highs and 14 new lows,

while the Nasdaq Composite recorded 180 new highs and 109 new

lows.