Shares of retailers and other consumer companies climbed but not by as much as the broader market as inflation remained high.
Consumer staples stocks led the sector's gains. U.S. consumer inflation excluding energy and food accelerated to a new four-decade high in September as prices continued to surge, a sign that persistent cost increases are becoming entrenched in the economy.
The Labor Department said that the so-called core measure of the consumer price index-which excludes volatile energy and food prices-gained 6.6% in September from a year earlier, up from 6.3% in August. That marked the biggest increase since August 1982.
Earnings were also in focus.
Domino's Pizza's third-quarter revenue rose 7.1%, as higher sales from its U.S. restaurants offset a decline from international outlets due to the stronger dollar.
IKEA stores reported record annual sales despite global supply-chain disruptions and fast-rising costs, in what the company said was a sign of the Swedish brand's appeal in uncertain economic times.
In deal news, Kroger is in discussions with smaller rival Albertsons over a potential combination that could unite the two largest supermarket operators in the U.S., The Wall Street Journal reported citing people familiar with the matter.
Meanwhile, an activist investor that has long targeted Kohl's Corp. is ratcheting up the pressure, calling on the department-store chain to make changes to its board or face another proxy fight.
Amazon.com's latest Prime Day-like event appears to have fallen short of the company's normal summer sales bonanzas. Analysts said Amazon's 48-hour "Prime Early Access Sale," which occurred on Tuesday and Wednesday, didn't give the e-commerce company the same revenue boost, or attract as much social-media buzz, as prior Prime Days.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
10-13-22 1700ET
