Stocks Rally –Despite Hotter CPI –With Weaker Employment

That backdrop has been particularly supportive of smaller-cap stocks, with the Russell 2000, Dow Transports, and S&P MidCap 400 outperforming. CPI: Total CPI increased 0.4% month-over-month in August (consensus: 0.3%), from a prior unrevised 0.2% increase; 2.9% YoY – the highest since January. The index for shelter rose 0.4% in August and was the largest…