Stocks fall; Disney, Beyond Meat disappoint

Wall Street headed lower Wednesday as inflation once again reared its worrisome head.

The Dow lost 240 points. The S&P 500 gave up 38. The Nasdaq tumbled 263.

U.S. consumer prices surged 0.9 percent in October. The largest price gain in fourth months took the year-over-year inflation rate to its biggest jump in over 30 years. The latest surge in inflation hits at the heart of Main Street. Food prices, lodging costs, and filling up at the gas pump were all significantly higher.

Hatem Dhiab, managing partner, Gerber Kawasaki thinks inflation is going to force the Fed's hand to lift rates faster than it may want to in order to cool off inflation.

'If rates get to a point where they are too high, absolutely, that's going to be a problem for the stock market. However, I think this is more of a problem for the bond market right now. It's, you know, if inflation is running four or five percent, yields would definitely need to jump, which means bond markets will suffer quite a bit."

In other economic data, new applications for jobless benefits fell for the sixth week in a row. The weekly numbers were released a day early due to Thursday's Veteran's Day holiday.

Meanwhile, a blockbuster IPO got Wall Street's attention. Rivian, backed by Ford and Amazon, launched the biggest U.S. IPO of the year and the seventh biggest ever. Investors bet Rivian, which specializes in electric vans and pick-up trucks will become the next Tesla. Shares ended their first day by soaring 29 percent.

On the earnings calendar. Disney missed sales and profit targets after the close. Subscriber numbers for Disney+ were also disappointing.

More bad news from Beyond Meat. The faux meat company posted a bigger-than-expected quarterly loss, sales missed forecasts and the outlook was weak.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting