Stocks are mixed Friday as an inflation reading that was slightly hotter than expected. Both $QQQ and $SPY are lower and are trending toward a 2nd straight losing week. It would be the first time $QQQ was lower on consecutive weeks in 2023. $DIA is higher and currently on track to post a gain for the week.

For economic data today, the Producer Price Index rose 0.3% in July, slightly higher than expected & the biggest monthly gain since January. Prices were up 0.8% YoY, up from 0.2% last month. Core prices were up 0.3% MoM, which was also the largest monthly increase since January. Core prices increased 2.4% YoY, which is the lowest level since January 2021.

Elsewhere, the University of Michigan Consumer Sentiment Index edged lower to 71.2 in the preliminary August reading. Current conditions were slightly higher at 77.4, while consumer expectations were lower at a reading of 67.3. Year-ahead inflation expectations were 3.3%, down from 3.4%.

Treasury yields are higher, with the 2-year T yield up 5.8 basis points to 4.88%, the 5-year T yield up 7.7 basis points to 4.28%, and the 10-year T yield up 6.2 basis points to 4.14%. The shortest-term advance rates are slightly lower, while the rest of the advance curve is higher.