Trade the News Market Internals Update at 12:00ET

Dow +277 S&P +25 NASDAQ +50

***Economic Data***

– (BR) Brazil Oct IBGE Inflation IPCA M/M: 0.4% v 0.4%e; Y/Y: 7.0% v 7.0%e
– (IC) Iceland Oct Unemployment Rate: 6.8% v 6.6% prior
– (MX) Mexico Sept Industrial Production M/M: +1.8% v -1.1% prior; Y/Y: 3.6% v 3.1%e
– (US) Nov Preliminary University of Michigan Confidence: 64.2 v 61.5e

– US equity indices are up sharply this morning another burst of risk appetite that has followed the formal appointment of the new Greek government, including Papademos as PM, and the passage of austerity measures by the Italian Senate. Note that the latter development sets Italian PM Berlusconi up for resignation on the lower house’s passage of the austerity bill, which is expected for Sunday. Note that US bond markets are closed for Veterans’ Day while volumes in equity markets are well below average, helping to further exaggerate moves to the upside. On the data front, the preliminary November U of Michigan Confidence reading was relatively strong, adding more optimism to the picture. Crude is another big beneficiary this morning, with the front-month WTI contract poised to break above $99 at its highest level since early August. Treasury futures are lower along with the dollar as money finds it way to risk assets.

– Disney reported a very strong increase in net income in its Q4, topping expectations. The firm saw a very strong double-digit y/y increases in consumer products and parks revenue. DIS is up more than 7% in the early going. Retailer Nordstrom disappointed investors after it merely met expectations and failed to increase its FY11 outlook. Chip maker NVIDIA’s quarterly profit widely beat expectations. Executives were very positive about the competitive potential of the firm’s new Tegra 3 processor in the mobile phone space. Hombuilder DR Horton missed both top- and bottom-line expectations slightly, although its sales orders, backlog and closing metrics showed strong growth. JWN and DHI are down 1%. NVDA is flat.

– The euro continued to climb during the New York morning on optimism about the new government in Greece and the Italian Senate passage of austerity measures, in addition to the Portugal Parliament approving its 2012 draft budget. Peripheral spreads tightened as European markets stabilized. IMF commented on the G20 and stated that global demand rebalancing had stalled. The IMF sees an elevated risk of advanced economies falling back into recession.

***Looking Ahead***

– (CO) Colombia Monetary Policy Meeting Minutes
– (CO) Colombia Central Bank monetary minutes
– (PE) Peru Sept Trade Balance: $552.0Me v $1.2B prior
– 11:00 (IC) Iceland Oct International Reserves (DKK) No est v 911.7B prior
– 13:15 (US) Fed member Yellen speaks at Banking Conference in Chicago
– 14:00 (AR) Argentina Oct Consumer Price Index M/M: 0.8%e v 0.8% prior; Y/Y: 9.8%e v 9.9% prior
– 14:00 (AR) Argentina Oct Wholesale Price Index M/M: No est v 0.9% prior; Y/Y: No et v 12.6% prior
– 14:45 (US) Fed member Williams speaks on Panel at IMF Conference

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