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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 up: Dow 0.22%, S&P 500 0.14%, Nasdaq 0.09%

(Updated at 09:45 a.m. ET / 1445 GMT)

By Purvi Agarwal and Lisa Pauline Mattackal

Nov 13 (Reuters) - Wall Street's main indexes inched

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. U.S.

stock index futures had reversed early losses following the

data.

"The market is already a little bit on edge about the

inflationary possibilities for 2025 under a new administration,"

said Ross Mayfield, investment strategist, Baird.

"The fact that (CPI) came in line ... gives markets a chance

to breathe and focus on the other things that have been moving

it lately."

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

Fed's December meeting jumped to 82% after the data, from around

58%, according to CME FedWatch.

Minneapolis Fed President Neel Kashkari said in an interview

with Bloomberg TV, that he was confident inflation was headed

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

The Dow Jones Industrial Average rose 98.25 points,

or 0.22%, to 44,009.23, the S&P 500 gained 8.33 points,

or 0.14%, to 5,992.32, and the Nasdaq Composite gained

17.34 points, or 0.09%, to 19,298.74.

Rate-sensitive small-cap companies tracked by the Russell

2000 index jumped 0.9%, while the real estate sector

gained 1.3%.

The benchmark index was buoyed by consumer discretionary

shares, boosted by a 4% gain in EV maker Tesla

after Trump named CEO Elon Musk as a co-leader of a

newly created Department of Government Efficiency.

Communication services stocks declined 0.5%,

weighed down by Meta Platforms ( META ). A judge ruled that the

Facebook owner will face an antitrust trial over its Instagram

and WhatsApp acquisitions.

All three major indexes closed lower on Tuesday, also

pressured by rising U.S. Treasury yields on expectations that

President-elect Donald Trump's policies could exacerbate

inflation. The benchmark 10-year Treasury yield

eased back to below 4.4% after Wednesday's CPI data.

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 56.5% 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 19% 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 2.35-to-1 ratio

on the NYSE and a 1.64-to-1 ratio on the Nasdaq.

The S&P 500 posted 23 new 52-week highs and 10 new lows,

while the Nasdaq Composite recorded 104 new highs and 45 new

lows.