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The markets are getting a bounce in early trading, despite a higher than expected inflation report. The PPI rose +1.3% (+0.5% consensus), which looks like a pretty big rise, but this data can be very volatile from month to month.

I would have thought that bond yields would be much higher on the news, but they seem to be taking it in stride. I think the bond market may be waiting for tomorrow's more important CPI report. And the fact that there was some weak manufacturing data this morning could be providing a bit of an offset. The 10-year yield is up a little to 4.54%.

CSCO announced it is buying WEBX, pushing the latter's stock up +24%. Have you seen CSCO's videoconferencing gear? It's pretty impressive. I would expect them to use this acquisition to make a big push into rolling out additional videoconferencing services to corporations.

Also, ICE made a competing offer to acquire BOT, valued at nearly $10 billion. This bid is higher than the current bid on the table from CME. BOT's stock is up +14% on the news, while CME is taking a hit.

And BEAV raised guidance yet again, reiterating the strong business trends they see and the good visibility the cycle is providing.

Asian and European markets both rose overnight, with the Nikkei bouncing back +1.1%. The Yen is also down a bit vs. the dollar, so no headwind there (so far). Oil is also trading down a touch, hovering around $58. Oil pretty much seems to be stuck in a trading range.

long BEAV

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