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September CPI data higher than expected

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Unemployment claims higher than estimates

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Delta Air Lines ( DAL ) shares fall after Q3 results

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Energy stocks track oil prices higher

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Banks to kick off Q3 earnings season on Friday

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Indexes: Dow down 0.14%, S&P 500 off 0.21, Nasdaq down

0.05%

(Updated with final closing prices, volume)

By Sinéad Carew and Lisa Pauline Mattackal

Oct 10 (Reuters) - Wall Street's main indexes closed

lower on Thursday as investors looked to higher-than-expected

inflation and unemployment claims for indications on the health

of the U.S. economy and the path for interest rates.

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%.

In a separate report released on Thursday, jobless claims

also rose to 258,000 for the week ending Oct. 5, versus an

estimate of 230,000.

"Investors were torn between a stronger than expected CPI

report and a weaker than expected unemployment claims report,"

said Jack Ablin, chief investment officer at Cresset Capital in

Chicago. "One showed inflation running hotter than expected and

the other showed the economy looking weaker than expected. It's

the worst of both worlds."

After the economic data, traders were pricing in a roughly

80% probability that the Federal Reserve will cut rates by 25

basis points at its meeting in November and a roughly 20% chance

it would leave rates unchanged, according to CME's FedWatch.

Atlanta Federal Reserve Bank President Raphael Bostic on

Thursday said he would be "totally comfortable" skipping an

interest-rate cut at an upcoming meeting of the U.S. central

bank, adding that the "choppiness" in recent data on inflation

and employment may warrant leaving rates on hold in November.

Chicago Fed President Austan Goolsbee said he sees "gradual"

rate cuts over the next year-and-a-half, while the New York

Fed's John Williams said he still sees rate reductions ahead.

The Dow Jones Industrial Average fell 57.88 points,

or 0.14%, to 42,454.12, the S&P 500 lost 11.99 points, or

0.21%, to 5,780.05 and the Nasdaq Composite lost 9.57

points, or 0.05%, to 18,282.05.

Both the S&P 500 and the Dow had notched record

closing highs in the previous day's session.

Only three of the S&P 500's 11 major industry sectors

advanced on Thursday with energy, adding 0.8% and

outperforming the rest as oil prices rose.

Oil futures rallied as U.S. fuel use spiked ahead of

Hurricane Milton, which made landfall on Florida's west coast

late on Wednesday. Oil prices are also being supported by supply

concerns related to conflicts in the Middle East.

Investors are also preparing for the third-quarter earnings

season, with major banks scheduled to report results on Friday.

The third-quarter earnings growth rate for the S&P 500 is

estimated to come in at 5% year-over-year, according to

estimates compiled by LSEG.

In individual stocks, Delta Air Lines ( DAL ) fell 1% after

it forecast quarterly revenue below expectations in anticipation

of slower travel spending. Other airlines also lost ground with

American Airlines ( AAL ), ending down 1.4%.

Shares of Pfizer ( PFE ) fell 2.8% as former executives

distanced themselves from activist investor Starboard's campaign

against the drugmaker.

On U.S. exchanges, 11.02 billion shares changed hands

compared with the 12.06 billion moving average for the last 20

sessions.

Declining issues outnumbered advancers by a 1.39-to-1 ratio

on the NYSE where there were 185 new highs and 55 new lows.

On the Nasdaq, 1,616 stocks rose and 2,576 fell as declining

issues outnumbered advancers by a 1.59-to-1 ratio. The S&P 500

posted 22 new 52-week highs and 2 new lows while the Nasdaq

Composite recorded 60 new highs and 163 new lows.