Monday Morning Malaise

Morning News of Note:

• GOOG: Google-GOOG to enter phone link advertising market-FT: Google (GOOG) is entering a new market which has already drawn Ebay's Skype (EBAY), Time Warner's AOL (TWX) and Yahoo (YHOO). The market is search advertising for small businesses which relies on the "telephone to connect advertisers with potential customers." Google's service will be called "Click to Call," and is only in trials. Research firm Kelsey Group says the market of linking web users to advertisers through voice calling could be a $1.4B to $4B market by 2009.
• WMT: Wal-Mart Stores-WMT sees November comps up approximately 4.3%
• SNDK: Stars Misalign for SanDisk I NEVER SUSPECTED that SanDisk shares were at their year's peak of 65 bucks when I reviewed some of the downside risks facing the maker of flash- memory chips ("A Threat to SanDisk," Nov. 7). Rival memory technologies and additions to industry manufacturing capacity were two worries for the Sunnyvale, Calif., firm (ticker: SNDK). (Full Story) BARRONS
• Short Interest: Nasdaq rptd Nov short interest dn (0.5%) m/m to 5,913,634,842, SIR 3.23 vs 3.31 in Oct -- WSJ (Friday)

Market Comments: The market is trading lower this morning. Retailers are down in early trading, likely on profit taking and the fact that early reports on Black Friday were less robust than some had hoped for. Existing home sales also came out weaker-than-expected this morning.

But a selloff should not come as a suprise, given the unrelenting strength we have seen in the market this month. Profit taking is normal, and healthy, as long as the current uptrend remains intact. FDC is up on news that the CEO is leaving, which could spur the company to spin out its Western Union division. EMR also raised guidance this morning on strong order trends.

long EMR, FDC, WMT