us stocks edged higher friday heading into midday after data showed producer prices climbed by a faster rate than expected last month challenging hopes that inflation might quickly subside all three major us stock indexes were on track to finish the week deeply in the red for the year the sp 500 was down more than 16 the dow down off 7 and the nasdaq composite 29 lower equities have been locked in choppy trade with a mix of defensive and cyclical sectors outperforming once again as investors digested a fresh round of economic data to help gauge the path of inflation on the ppi index particular attention was paid to the monthly figures which showed wholesale prices rose 03 in november compared with expectations for a 02 gain from economists polled by the wall street journal the pace of producerprice growth for october and september was also revised higher the upshot is that while the pace of price increases over the prior 12 months slowed from the prior month the extent of the pullback didnt satisfy investors hopes for a substantial easing according to peter boockvar chief investment officer of bleakley financial core producer prices advanced 04 in november compared with expectations for a 02 gain im amazed how many think that were just going to quickly go back to a precovid environment with inflation and i just dont see it especially if one listens directly to what companies are saying boockvar said see the hottest us jobs market in years is cooling off  but its still glowing red in other economic data the university of michigan gauge of consumer sentiment rose to a preliminary december reading of 591 from 568 in november but market strategists said investors remain focused on next weeks november consumerprice index to gain a fuller view on inflation onward to the cpi number next week we need to see what happens there said john stoltzfus chief investment strategist at oppenheimer battered stocks in the technologyheavy communications services sector were leading the sp 500 higher on friday growth is beginning to regain some favor on some days stoltzfus said thats a healthy sign in our view