Stocks Rise, Oil Prices Drop           08/13 09:28

   The U.S. stock market is rising toward an all-time high on Thursday 
following the latest sign that inflation is getting less bad. Stocks also got a 
lift from easing oil prices in their latest yo-yo move.

   NEW YORK (AP) -- The U.S. stock market is rising toward an all-time high on 
Thursday following the latest sign that inflation is getting less bad. Stocks 
also got a lift from easing oil prices in their latest yo-yo move.

   The S&P 500 climbed 0.8% and was on track to top its record set last week. 
The Dow Jones Industrial Average was up 185 points, or 0.3%, as of 10:15 a.m. 
Eastern time, and the Nasdaq composite was 1% higher.

   Wall Street relaxed after a report showed prices at the U.S. wholesale level 
were 4.7% higher last month than a year earlier. While that's still very high, 
it's not as bad as June's 5.5% inflation rate at the wholesale level, and it 
was slightly better than economists expected.

   If inflation continues to trend that way, the Federal Reserve could decide 
to hold off on hikes to interest rates. Higher rates would help keep a lid on 
inflation, but they do so by intentionally slowing the economy and making it 
more expensive for everyone to borrow money.

   Fed officials are split on whether they should have already begun hiking 
interest rates. But Thursday's report, following a similar update on inflation 
at the U.S. consumer level the day before, have traders now betting on just a 
35% chance that the Fed will raise rates at its next meeting in September. 
That's down from the roughly 50% probability seen two days ago, according to 
data from CME Group.

   Any increase by the Fed would be the first in more than three years. It also 
could anger President Donald Trump, who has been lobbying for lower interest 
rates.

   Treasury yields sank in the bond market, which eases pressure on stocks and 
other investments. The yield on the 10-year Treasury fell to 4.61% from 4.68% 
late Wednesday and from 4.72% on Monday, though it's still well above its 3.97% 
level from before the war with Iran sent oil and gasoline prices surging.

   Oil prices eased back on Thursday, helping to limit worries about inflation. 
The price for a barrel of Brent crude oil fell 3.3% to $86.02.

   It's been swinging sharply recently and pinballed between $72 and $102 last 
month as hopes rose and fell that a deal in the war could allow oil tankers to 
freely exit the Middle East again and deliver crude worldwide.

   On Wall Street, stocks in the real-estate industry helped lead the way. When 
interest rates are lower and bonds are paying less in yields, the dividends 
that many real-estate investment trusts pay look more attractive. Lower 
mortgage rates could also drive more activity in the housing market.

   AvalonBay Communities, which owns apartments across the country, rose 2.6%. 
Builders FirstSource, which sells countertops and other building materials, 
climbed 3.4%.

   Companies with big fuel bills also benefited from the drop in oil prices, 
which strengthened hopes for less pressure on their expenses. United Airlines 
rose 1.7%, and cruise operator Carnival climbed 2.9%.

   Jack in the Box jumped 7.3% after the restaurant chain became one of the 
latest companies to report a bigger profit for the latest quarter than analysts 
expected. Such reports have helped drive Wall Street to its records because 
stocks tend to track the path of corporate profits over the long term.

   They helped offset a drop for Cisco Systems, which fell 7% even though the 
tech giant reported stronger profit and revenue for the latest quarter than 
Wall Street expected. Analysts said investors may be worried about its profit 
margins going forward, and its stock has been shaky through the summer amid 
worries that AI-related stocks in general shot too high.

   In stock markets abroad, indexes were mixed in Europe and Asia. South 
Korea's Kospi again had one of the world's biggest moves and jumped 3.6%. Seoul 
has been home to the world's sharpest swings for artificial-intelligence stocks 
because it's dominated by two tech giants, Samsung Electronics and SK Hynix.