Trade the News Market Internals update at 14:00ET

Dow +31 S&P -1 NASDAQ -9

– (GE) Germany Oct Factory Orders M/M: +5.2% v +1.0%e; Y/Y: +5.4% v 1.9%e

– (BR) Brazil Q3 GDP 0.0% v 0.0%e; Y/Y: +2.1% v +2.4%e

– (US) Weekly ICSC Chain Store Sales w/e Dec 3rd: -2.3% +3.8% y/y

– (CA) Bank of Canada leaves interest rate unchanged at 1.0%

– (US) Weekly Redbook Retail Sales w/e Dec 3rd: -2.6% y/y; Dec MTD: +3.2% v Nov

– (US) Dec IBD/TIPP Economic Optimism: 40.6 v 41.0e

– (CA) Canada Nov Ivey Purchasing Managers Index: 59.9 v 56.0e

– After declining sharply in the wake of S&P’s moves to put the sovereign ratings of euro zone nations – including its six AAA-rated members – on watch negative, equity markets on both sides of the Atlantic are attempting to stabilize. S&P executives made the rounds this morning to explain the move and noted that there is no dead certainty that countries put on watch would be downgraded. In addition, S&P said that the EFSF’s rating would likely drop to that of the lowest rating of the six AAA-rated nations put on watch. US equities have see-sawed in the early going, with many analysts hopeful that S&P’s move could help sharpen the appetite among Europe’s leaders for compromise at the key summit meetings later this week. 

-Trading overall has been fairly quiet with relatively little movement seen in commodity and fx markets in general. The US 10-year yield is up just a few basis points while oil prices are down marginally. Gold, silver and copper futures are each giving back a little more than 1%.- In pre-earnings guidance, 3M offered an initial look at its FY12 guidance that was largely in line with consensus expectations and also reaffirmed its FY11 outlook. L-3 guided its initial FY12 outlook as well, although its numbers were subpar, slamming the name. Shares of MMM are up 2%, while LLL has made up earlier losses to trade flat on the day. Darden Restaurants warned that its profits in the current quarter would widely miss expectations, although revenue is holding up. DRI is down 10%.

– In a mid-quarter update released yesterday after the close, semi name Novellus Systems reiterated its prior guidance and also said that its bookings in the current quarter were trending higher than prior projections, thanks to improved confidence among customers. Shares of NVLS rose more than 3%, while other semi competitors such as KLAC and AMAT were up about 1%. Shares of prepaid wireless service provider Leap Wireless rose as much as 9% in the early going after striking a deal with Verizon Wireless to acquire a block of spectrum in Chicago in exchange for other spectrum assets in various markets around the US. LEAP gave up some gains to trade +6% mid morning, while competitor PCS is up a whopping 8%. Addressing an investor conference this morning, PCS’s CFO said that the company is seeing a strong reduction in churn levels in the current quarter.

– 11:30 (US) Treasury to sell 4-Week Bills

– 16:00 (CO) Colombia Oct Exports FOB: No est v $4.5B prior