Wednesday's midday trade: Tame inflation data lifts stocks before Fed minutes

US stocks rose on Wednesday after an economic report showed the annual inflation rate remains subdued, giving the Federal Reserve room to keep its stimulus measures in place. The Consumer Price Index dipped 0.1 percent last month and rose only 1 percent for the 12 months through October, the smallest year-over-year increase since 2009. The Federal Reserve's target inflation rate is 2 percent so the CPI data gives the central bank one less reason to cut back on its accommodative policy.
The Dow industrials climbed above 16,000 earlier on Wednesday and then backed away. The Dow has traded above 16,000 over the last couple of sessions but failed to close above that level, while the S&P 500 faces resistance at 1,800. A solid move above those levels could further attract investors and money managers eager to chase performance. The Dow Jones industrial average rose 25.46 points or 0.16 percent, to 15,992.49. The S&P 500 gained 4.18 points or 0.23 percent, to 1,792.05. The Nasdaq Composite added 15.82 points or 0.40 percent, to 3,947.36.