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The markets are getting a small bounce at the open. Semis, biotech, financials are all higher while retail stocks are mostly lower.

Bond yields are also lower again today, with the 10-year falling another 4 basis points to 4.57%. This yield has fallen 27 basis points in roughly a week, and is now back down to its September lows. It is also causing the inversion in the yield curve to steepen. I believe this will put further pressure on the Fed to cut rates next year.

But the big news this morning, even if it did occur north of the border, is the news that the Canadian government announced plans to tax their Canadian Royalty Trusts like a regular corporation.

This is a stupid idea. The Canadian markets were seeing a flood of foregn investment due to the attraction of investments such as these. Taxing them will drive foreign capital from the market, and cause a larger drain on revenues for the country than they stand to benefit from raising the taxes. Never underestimate the idiocy of government to go against the grain of the markets.

In other news and notes:

• GRMN reports solid quarter; stock gaps down
• Canadian Royalty Trusts fall -10% on new tax push
• OII beats estimates, raises guidance; stock gaps higher
• NY Times says CVS in talks to buy CMX
• TWX reports in-line quarter
• Goldman adds CAH to Conviction List, removes SYMC
• CTXS authorizes new $300M buyback
• MA crushes estimates; stock gaps higher
• ISM Index 51.2 vs. 53.0 consensus

long GS

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