Yesterday felt good

Morning News of Note:

• GDT: Guidant-GDT JNJ/GDT deal will probably go through but at lower prx-reit Neut@FACT JNJ is mulling over alternatives of its merger agreement with GDT due to GDT's CRM device recalls and the probing of the FDA of GDT's actions. The firm thinks JNJ is attempting to assess damage done to the franchise and it is unlikely GDT will regain all of the CRM share it lost due to product recalls. While JNJ's comments have been vague, the firm thinks that the Co will try to negotiate a lower price for GDT than their original bid of $76/share.
• CMCSK: Comcast searches for way to be television's Google For Comcast Corp. Chief Executive Brian Roberts, the key challenge in today's digital video world is how to become the Google of television. Roberts, who heads the nation's largest cable TV provider, said broadband Internet makes the traditional cable TV business obsolete. As a result, he said, Comcast is stressing its on-demand video service, which enables customers to view movies and programs whenever they want. (Full Story) Chicago Tribune
• SBUX: Lattes Lure Brits to Coffee Tea Sales Fall as Starbucks Draws the Young; Fighting Back With New Tea Flavors, Travel Cup There are eight Starbucks coffee shops within three blocks of St. Paul's Cathedral here, and all were bustling one recent lunchtime. Kevin Quinn bought a mocha frappuccino, the first of several Starbucks drinks he said he was likely to consume that day. He also picked up a caffe latte, a cappuccino and a piece of chocolate cake for colleagues, paying £10.60 ($18.55). (Full Story) WSJ
• Hurricane Wilma: Hurricane Wilma weakened to a Category 4 hurricane with top winds of near 150 mph early today, but forecasters warned the storm may re-intensify later in the day. The storm is wobbling between Cuba and the Yucatan. Officials in the Florida Keys said they would order a mandatory evacuation for all residents, perhaps as early as noon today, if the storm continues to appear headed in that direction. - CNN

Market Comments: What a nice close yesterday. Picture perfect turnaround. The market was weak most of the morning, causing more panic selling, but then turned higher and rallied strong into the close. That left a LROD (large-range outside day) on the charts for both the SPX and COMP. Volume expanded on both exchanges, qualifying as an accumulation day. So count that as Day 1 for a new rally. Now we need to look for some follow-thru accumulation over the next week.

AMGN and EBAY reported in-line results, which weren't enough to keep the stocks from selling off. JNPR reported a strong quarter. Tonight, we'll hear from GOOG, BRCM, and SNDK.

long AMGN, CMCSK, GOOG, JNJ, SBUX