Here's What's Pushing the Dow to 2007 Highs

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The Dow has hit its highest intraday level since Dec. 31, 2007. (Read more: Stocks Rise, Dow at Best Level Since Dec. 2007) Several events are pushing stocks forward:

1) the German Court will likely approve the ESM. This is causing the euro to break out to multimonth highs, and German stocks are at 52-week highs. (Read more: German Court Won't Delay Bailout Fund Ruling)

2) China's Premier Wen Jiabao, said China was on track to meet its economic growth targets. (Read more: China's Wen Says Will Meet 2012 Growth Target)

That would be the 7.5 percent GDP growth target it set earlier this year. China also approved $150 billion in infrastructure projects last week; rather mysteriously, the Premier also mentioned that there was 100 billion yuan left in a fiscal stability fund to boost growth that was also available.

3) Apple announcement. There are several amusing and a few downright silly pieces out on the economic impact of the iPhone 5. My favorite: a JPMorgan Chase report says the iPhone 5 could add 0.33 percent or more to GDP for the fourth quarter all by itself.

4) FOMC announcement

While everyone believes the German court will uphold the constitutionality of the ESM, there is some anxiety that they will impose conditions that would be onerous for the ESM or any future bailout funds.

The conditions most often discussed include:

1) Bundestag approval for any future bailouts. This will almost certainly be a condition and should not be a problem.

2) a ceiling on the amount of German exposure, either for the ESM or for some future bailout. That would cast doubt on how big the bazooka is. I think the court does not want to hobble any future bailout funds, so this seems unlikely.

3) a requirement that any further bailouts that would increase European integration would require a change in its constitution. This too seems unlikely.

—By CNBC’s Bob Pisani

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