Trade the News Market Internals Update at 14:00ET

Dow +50 S&P +3.5 NASDAQ -1

***Economic Data***

– (AR) Argentina Oct Budget Balance: No est v 449.0M prior
– (CL) Chile Q3 Gross Domestic Product Y/Y: 4.8% v 4.8%e; Current Account: -2.9B v -$1.4Be
– (CA) Canada Oct Consumer Price Index M/M: 0.2% v 0.1%e; Y/Y: 2.9% v 2.8%e; Consumer Price Index: 120.8 v 120.6 prior
– (CA) Canada Oct CPI Core M/M: 0.3% v 0.1%e; Y/Y: 2.1% v 1.9%e
– (BR) Brazil Oct CAGED Formal Job Creation: 123.1K v 167.2Ke
– (PD) Poland Oct Employment M/M: -0.1% v -0.1%e; Y/Y: 2.5% v 2.5%e
– (PD) Poland Oct Avg Gross Wages M/M: 1.0% v 1.1%e; Y/Y: 5.1% v 5.3%e
– (CA) Canada Oct Leading Indicators M/M: 0.2% v 0.1%e
– (BE) Belgium Nov Consumer Confidence: -14 v -7 prior
– (US) Oct Leading Indicators: 0.9% v 0.6%e

– Trading in US equity markets has been choppy but up slightly this morning after two sessions of worrying declines on events in Europe. Volume remains lackluster in the early going despite today being options expiration. Yields on Italian and Spanish 10-year debt have stabilized around 6.6% as the ECB continues to snap up bonds. Italian PM Monti’s new government has past its first test, sailing through a procedural vote of confidence, while the press continues to run headlines that some headway is being made on allowing the ECB to channel bailout funding for euro zone members through the IMF in order to overcome legal roadblocks, although the Germans have not said yes as of yet. Spot gold has ticked up a bit after yesterday’s big sell-off, to $1,726, helping other precious and industrial metals make some modest gains. Interestingly crude is around $3.50 off yesterday’s highs, dropping below the $99 handle. Several reports suggesting the Germans are moving in the direction of letting the ECB be more aggressive in providing a backstop for sovereign bond markets has aided risk appetite flows in the bond markets. The bund future traded down a point while the US 10-year is slightly lower but continues to yield roughly 2%.

– Shares of consumer staples name Heinz are down nearly 3% this morning. The firm met expectations in its Q2, however investors are disappointed that it has reiterated weak profit forecast for FY12. High-end apparel name Ann Inc (formerly AnnTaylor) met expectations in its Q3 report, and warned that the Q4 environment is likely to be highly promotional. Salesforce.com nudged its FY12 guidance a bit higher and met expectations in its Q4. On the conference call, the CEO said the business is seeing strong growth in every global region. Semi manufacturer Marvell is surging despite a relatively tepid earnings report. Note that the firm laid out its first estimates for the impact of the Thailand floods, and investors are apparently pleased that the amounts were not greater. Among the biggest gainers is Dolby Labs; shares of DLB are up 13%. In other news, Nike is up slightly on a quarterly dividend increase.

– EUR/USD tested above the 1.36 handle on the ECB/IMF lending story, but come off US session highs after the German Foreign Ministry was said to have confirmed details of a leaked memo that it was considering permitting more euro zone orderly defaults beyond Greece. The Swiss government reiterated once again that it was closely watching the franc closely and warned that it might take additional measures to increase economic activity. The Canadian Dollar was firmer in the wake of hotter inflation numbers for the month of October.

***Looking Ahead***

– 11:00 (US) Fed to purchase $2.25-2.75B in Notes/Bonds
– 11:30 (BR) Brazil Oct Tax Collections (BRL): 85.6Be v 75.1B prior
– 12:15 (US) Fed Fisher
– 14:00 (AR) Argentina Sept Economic Activity Index M/M: No est v 0.6% prior; Y/Y: No est v 8.6% prior
– 16:00 (CO) Colombia Sept Industrial Production Y/Y: No est v 9.5% prior; Retail Sales Y/Y: No est v 9.7% prior

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