Based on the action in the S&P 500, it would seem investors were mostly shrugging off Thursday's hotter-than-expected producer-price index report. But signs of stress were showing up elsewhere. Many of the more rate-sensitive names that had rallied hard earlier this week,

Stocks dropped and bond yields rose after July producer price inflation spiked more than expected. The PPI for total final demand rose at a 0.9% monthly rate in July, compared to economists' expectations at just 0.