(Updated with preliminary closing prices at 4:00 p.m ET/ 2000

GMT)

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.

According to preliminary data, the S&P 500 lost 11.77

points, or 0.20%, to end at 5,780.27 points, while the Nasdaq

Composite lost 9.73 points, or 0.05%, to 18,281.89. The

Dow Jones Industrial Average fell 55.45 points, or 0.13%,

to 42,456.55.

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

closing highs in the previous day's session.

During Thursday's session energy outperformed other

sectors as oil prices rose.

Oil futures were rallying as U.S. fuel use had 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 after it

forecast quarterly revenue below expectations in anticipation of

slower travel spending. Other airlines, American Airlines ( AAL )

, also lost ground.

Shares of Pfizer ( PFE ) fell as former executives distanced

themselves from activist investor Starboard's campaign against

the drugmaker.