Signals for North American stocks are mixed Friday with the fastest rise in U.S. consumer inflation in 25 years and disappointing figures on U.S. retail sales. However, Dow component General Electric delivered a strong third-quarter earnings report after markets closed yesterday.

The U.S. consumer-price index rose 1.2% in September, its biggest increase since March 1980, after rising 0.5% in August.

More than 90% of the rise was due to energy prices, which were up a record 12%, the U.S. Labor Department said.

The closely watched core index, which excludes food and energy items, rose 0.1% for the fifth straight month. The core index rose at a seasonally adjusted annual rate of 2.0% as of September, down from a 2.1% as of August.

Economists had expected surging gasoline prices in the wake of hurricanes Katrina and Rita to boost overall energy prices and overall consumer prices in September.

The latest data are likely to reinforce expectations that the U.S. Federal Reserve will raise the federal-funds rate further at its upcoming November. 1 meeting

Separately, U.S. retail sales rose mildly during September/ Retail sales increased a seasonally adjusted 0.2%, after falling a revised 1.9% in August, the Commerce Department said Friday. Sales were originally seen declining 2.1% in August.

Here at home, Statistics Canada said escalating oil prices coupled with a rebound in the production of motor vehicles and parts contributed to a strong 3.3% gain in the value of manufacturers’ shipments to $51.9 billion during August.

In earnings news, General Electric Co. reported a 15% increase in third-quarter profit despite some hurricane-related losses and said that all of its business divisions showed double-digit earnings growth.
MARKETS WRAP
In other news, FPI Ltd. has delayed the proposed income-trust conversion for its Ocean Cuisine International division because of negative market conditions.

On Wall Street, Refco, the futures trading firm embroiled in scandal, is shutting down its Refco Capital Markets unit, which handles over-the-counter futures transactions, due to liquidity concerns, planning a 15-day moratorium on all activities at the unit. Refco’s stock was halted indefinitely on the New York Stock Exchange.

European markets were flat Friday, with London’s FTSE 100-share index up 0.1%.

In Asia, shares ended mostly lower. Japanese stocks fell for a third day, with the Nikkei 225 Stock Average fell 28.70 points, or 0.2%, to close at 13,420.54.

Toronto stocks closed lower Thursday, down for the second-straight session, as resources led the senior exchange into negative territory.

The S&P/TSX composite index finished down 63.40 points, or 0.60%, to 10,429.71, rebounding off a mid-day low of 10,294.93. The market has lost 190.79 points through two sessions.

The junior S&P/TSX Venture composite index finished down 33.92, or 1.62%, to 2,055.95.

In New York, inflation worries arising from hawkish U.S. Federal Reserve statements continue to keep investors bearish despite the recent drop in crude prices.

The Dow Jones industrial average closed essentially flat, losing 0.32 to finish 10,216.59. The broad-based S&P500 index lost 0.84, or 0.07%, to 1,176.84, and the tech-heavy Nasdaq composite index climbed 9.75, or 0.48%, to 2,047.22.