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PPI rises 0.2% on monthly basis in October

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Weekly jobless claims lower than forecast

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Walt Disney ( DIS ) up after beating Q4 earnings estimates

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Tapestry gains after terminating Capri deal

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Indexes down: Dow 0.08%, S&P 500 0.16%, Nasdaq 0.18%

(Updated at 09:43 a.m. ET/1443 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Nov 14 (Reuters) - Wall Street's main indexes edged

lower in choppy trading on Thursday after monthly producer

prices rose as expected, with investors awaiting Fed Chair

Jerome Powell's comments later in the day for clues on the

outlook for interest rates.

The producer price index (PPI) for final demand rose 0.2% on

a monthly basis in October, in line with forecasts, though the

annual rise of 2.4% was a touch higher than expectations.

Meanwhile, jobless claims dropped 4,000 to a seasonally

adjusted 217,000 for the week ended Nov. 9, lower than forecast.

"The data continues to suggest that inflation and employment

continue on their trajectory toward a soft landing," said Keith

Buchanan, senior portfolio manager at Globalt Investments.

Buchanan, however, noted that if Treasury yields keep moving

higher, that would be an indication the economy might not

achieve a soft landing.

Changing inflation expectations are visible in the bond

market, where the U.S. 10-year Treasury yield has

ticked up to its highest since July.

Traders slightly trimmed bets on an interest rate cut at the

Fed's December meeting. They now expect a 79.1% chance of a

25-basis point reduction from 82% prior to the data, according

to the CME FedWatch tool.

The Dow Jones Industrial Average fell 36.90 points,

or 0.08%, to 43,921.29, the S&P 500 lost 9.36 points, or

0.16%, to 5,976.02, and the Nasdaq Composite lost 34.83

points, or 0.18%, to 19,195.90.

Losses on the blue-chip Dow were limited by a 10.4% gain in

Walt Disney ( DIS ) after the company reported quarterly

earnings that topped Street estimates.

Rate-sensitive growth stocks such as Tesla and

Alphabet lost more than 1% each. The real estate

sector was the biggest decliner on the benchmark

index.

Powell will provide an update on his economic outlook to

business leaders in Dallas, a day after some Fed policymakers

shifted their attention back to inflation risks as they weighed

when, and how fast and far, to cut interest rates.

Fed governor Adriana Kugler said on Thursday the central

bank has made considerable progress in working to achieve its

job and inflation goals, though noting challenges in bringing

inflation back to target.

A post-election rally in equities appeared to be waning,

even as focus turned to the potential inflationary pressures

from policies under President-elect Donald Trump's

administration.

Shares of cryptocurrency-focused companies rose as bitcoin

continued to climb on hopes of favorable policies under

Trump. Miner MARA Holdings ( MARA ) rose 2.6% and bitcoin buyer

MicroStrategy ( MSTR ) was up 4.6%.

Tapestry gained 8.8% to hit its highest since early

2014, after the Coach parent said it was terminating its $8.5

billion deal for Capri Holdings ( CPRI ) after the deal was

blocked by a U.S. judge. Capri's shares fell 4.2%.

Remarks from Fed official John Williams are expected later

in the day.

Advancing issues outnumbered decliners for a 1.29-to-1 ratio

on the NYSE and a 1.12-to-1 ratio on the Nasdaq.

The S&P 500 posted 16 new 52-week highs and six new lows,

while the Nasdaq Composite recorded 37 new highs and 61 new

lows.