Consumer prices rose moderately in October but there was little sign of inflation as the cost of autos, clothing and hotels fell.

The Consumer Price Index rose 0.2 percent last month, the Labor Department said, mostly due to higher gas prices.

But excluding the volatile energy and food categories, the core index was unchanged for the third straight month. In the past year, core prices have risen by only 0.6 percent, the smallest annual rise since the index began in 1957.

The weak economy is keeping a lid on prices. Consumers, facing high unemployment and slow wage growth, are restraining their spending. Retailers and other companies don't want to risk losing frugal shoppers by raising prices.

The report provides support for the Federal Reserve's recent moves to boost the economy. The central bank said earlier this month that it would buy $600 billion in Treasury bonds in an effort to lower interest rates and spur more borrowing and spending.

That decision has come under extensive criticism. Many leading Republican economists said earlier this week that the Fed's actions risk triggering runaway inflation.

But several economists said Wednesday's report shows that concerns about inflation are misplaced.

"Fears about a potential outbreak of inflation from the Fed's recent moves are massively overblown and are completely out of sync with the reality of extremely competitive markets for ... products and services," said Brian Bethune, an economist at IHS Global Insight.

Record company Warner Music Group Corp. said Wednesday that its fiscal 2010 fourth-quarter loss widened on lower revenue, reflecting the continued shift from CD sales to digital music.

The company lost $46 million, or 31 cents per share, compared with a loss of $18 million, or 12 cents per share, during the same period a year prior. Revenue fell 13 percent to $752 million from $867 million. The fourth quarter ended Sept. 30.

Analysts surveyed by Thomson Reuters expected a loss of 13 cents per share on $731.7 million in revenue.

"The company's revenue results continue to reflect the transition from physical to digital in the recorded music industry where increases in digital revenue have not yet fully offset the declines in physical revenue," the company said in a statement.

Revenue from recorded music fell 13.3 percent to $619.9 million during the quarter, with the U.S., Japan, and most of Europe the weakest markets. But digital revenue from the sector rose 7 percent to $183 million.

The most beloved capitalist in the world, Warren Buffett, has written another charming, thoughtful article in the New York Times.

And this one will make a lot of Americans furious.

Buffett's article is a "thank-you note" to our government, thanking them for the bailouts and emergency actions that Buffett says saved America from economic Armageddon two years ago.  Although people will always criticize the details, Buffett says, they can't criticize the outcome, which was remarkable:

"Uncle Sam, you delivered. People will second-guess your specific decisions; you can always count on that. But just as there is a fog of war, there is a fog of panic — and, overall, your actions were remarkably effective."

Buffett makes a compelling case that, if the government had done nothing in the financial crisis, the financial system and economy might have collapsed, at least temporarily.  And given that the system did NOT collapse, the government's intervention certainly was commendable.

But, as many people have already pointed out, no one benefited more from the bailouts than Warren Buffett, so it's no surprise that he's grateful.  Most bailout critics, furthermore, don't suggest that the government should have sat around and done nothing--they argue that the government's intervention should have been more fair and effective, particularly with respect to Wall Street.

Mortgage applications fell sharply last week as mortgage rates pushed higher.

The volume of mortgage loan applications decreased 14.4% on a seasonally adjusted basis in the week ending Nov. 12, the Mortgage Bankers Association said early Wednesday.

Refinancing applications decreased 16.5% from the previous week to the lowest level observed since July. New-home purchase loan applications decreased 5% week-over-week, the first decrease after three consecutive weekly increases.

"Rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Mortgage applications, particularly for refinances, dropped in response."

U.S. stocks fell on Thursday, led by technology losses as Cisco Systems Inc's weak outlook fueled worries that economic softness will hurt profits.

Cisco's shares lost 16 percent to $20.57 after the Internet network product provider's CEO, John Chambers, cautioned about "short-term challenges" in Europe and public-sector spending. Late Wednesday, the company forecast revenue and earnings well below estimates.

On a percentage-loss basis, if Cisco closes at that level, this would be the worst one-day percentage drop since July 14, 1994, when Cisco slid 17.71 percent, according to Thomson Reuters Datastream.

Howard Silverblatt, an analyst at Standard & Poor's, said this was set to be the biggest one-day dollar loss ever for Cisco's stock.

By early afternoon, 385 million shares of Cisco had traded, making this one of the 10 busiest days in the history of the stock.

The warning from Cisco also dragged down shares of other tech heavyweights: Microsoft, down 1.7 percent at $26.48; Hewlett-Packard, down 3 percent at $42.83, and Juniper Networks, down 0.4 percent at $34.40. The drop in Cisco's stock reduced its own market value by about $21 billion in early trading, according to S&P.

The Dow Jones industrial average .DJI fell 91.27 points, or 0.80 percent, to 11,265.77. The Standard & Poor's 500 Index .SPX shed 7.73 points, or 0.63 percent, to 1,210.98. The Nasdaq Composite Index .IXIC dropped 27.85 points, or 1.08 percent, to 2,550.93.

Analysts saw the outlook as worrisome, particularly since profit growth for technology companies this reporting period has outperformed the broader S&P 500.