CNBC's Domm: Today's Agenda in the Markets

Stock futures are higher today as investors await wholesale inflation data while keeping an eye on the bond market. Global stock markets rebounded after yesterday's turnaround on Wall Street and tamer bond markets.

In a display of the volatility gripping the markets, the Dow rebounded 187 points or 1.4% higher as rates in the Treasury market eased yesterday. This is after a 129 point decline the day before. The Nasdaq was up 32, or 1.3% and the S&P climbed 22 or 1.5%. The 10-Year started the day over 5.30% but was at 5.20% late in the day.

"The high yields of early Wednesday morning have a chance of being the highs of this current move," said CNBC's Rick Santelli. Santelli said technicals are pointing to that possibility. "Equities are trading off of the direction of yields. Period. It's not the data."

CNBC's Bob Pisani, from the NYSE, said stock traders yesterday watched rates closely but were cheered by the Fed's Beige Book handling of inflation. "They didn't make a big thing about it. Immediately yields started moving, and stocks started moving."

Oil this morning is slightly firmer after rising 1.4% yesterday to $66.26 while gasoline gained 1 % to $2.1553 on the NYMEX.

Traders today are watching earnings from Goldman Sachs and Bear Stearns . Goldman reported profits of $4.93 per share compared to $4.79 per share last year. The firm said its equities business generated its second highest quarterly net revenues of $2.5 billion. Bear Stearns reported second quarter earnings fell to $2.42 per share from $3.72 the year earlier. Bear's stock is trading lower. The firm, a big player in mortgage backed securities, said its revenues from mortgages reflect an industry wide decline. The Wall Street Journal, meanwhile, reports today that a Bear Stearns hedge fund faces big losses in the mortgage securities market and is trying to sell about $4 billion mortgage backed bonds to raise cash. The Journal notes the sale would be just a tiny slice of the $7 trillion mortgage-backed bond market. CNBC's Trish Regan will report on the brokers today.

MORTGAGE MISERY CNBC's Diana Olick will examine new data on mortgage delinquencies today. On Tuesday, she reported that foreclosures were up 90% last month from a year earlier. Today's data is a quarterly report from the Mortgage Bankers Association. Also worth watching is a Fed hearing on the Home Ownership and Equity Protection Act and rulemaking on abusive mortgage lending practices.

MERGER MACHINE Some merger news is making headlines today but we are still waiting for Wall Street's merger machine to reengage and start cranking out deals. Yesterday, Reuters reported that Trim Tabs said only $1.1 billion in new cash takeovers were announced in the five preceding trading days, making it the lowest five-day total for the year. The last time the action slowed so much was around the Easter holiday. Today's highlights include signs that the Chicago Mercantile Exchange is ready to sweeten its bid for CBOT . CBOT's board meets this morning.

OPEN FOR BUSINESS Our Darren Rovell is at the U.S. Open and CNBC will cover the big money of the golf business today.

AROUND THE WORLD China reported industrial production growth accelerated unexpectedly to 18.1% in May. Earlier, China Premier Wen Jiabao said the government needs to take further steps to cool the fast growing Chinese economy.

PPI UP ON ENERGY And, the producer price index rose more than expected in May, by 0.9%, on higher energy prices, which were up by 4.1%. The core rate, excluding food and energy, was higher by 0.2%, as expected.