ISM Beats, But Does It?

The headline number beats, the report looks pretty good, but the underlying current that continues to be seen in various reports is the "Prices Paid" portion that spoils the report. Again we have seen the materials and commodities that go into manufacturing rise, in fact by 9 points when expectations were for a 1 point rise. The Prices Paid component has just hit a 2 year high. So again, Bernanke, is QE and POMO really about lifting inflation?

The market seems to have had a strong initial reaction, but there's an underlying negative tone there too.