Morning Look

Morning News of Note:

• INTC TIVO: Intel to Partner With TiVo on PC Platform Looking to boost the number of computers whirring away in living rooms, Intel Corp. on Wednesday unveiled its first list of companies whose products are expected to work with the chip maker's upcoming Viiv entertainment PC platform. So far, about 40 companies that develop TV, movie, music, gaming and photo-editing products are testing and verifying services, programs and gadgets that will interact with the Intel technology, said Kevin Corbett, an Intel vice president in charge of content services (Full Story) Washington Post
• TWX: Icahn Finds Ally in Bid to Change Time Warner Carl C. Icahn has a new, perhaps unlikely ally: Bruce Wasserstein. Mr. Icahn, who is leading a group of dissident investors in a campaign against Time Warner and its board, said yesterday that he had hired Mr. Wasserstein and his firm, Lazard, to help advance the fight. (Full Story) NY Times
• MOT NOK SNE: Cellphones Move From Stylish to Smart CELLPHONE MAKERS LOVE MAKING FASHION STATEMENTS. Just ask Motorola, which sold 12 million of its sleek, stylish RAZR phones in less than a year, for as much as $499. Even after it hit the mass market in the third quarter and prices fell under $200, the RAZR helped Motorola's profit triple in the quarter from a year earlier on a 26% rise in sales. (Full Story) BARRONS
• Eye Drops: The Food and Drug Administration warned consumers to dispose of eye drops and certain pain drugs made by Molecular Biologics Inc., a private California company. The FDA said the firm hasn't adhered to proper manufacturing regulations and that some of the company's pain medications lacked instructions for safe use. The agency said consumers should dispose of Oxydrops, Bright Eyes, Bright Eyes II, Clarity Vision for Life, Visitein and Can-C brands of eye drops and the Biogesic, Bio-Ice and Bio-Heat pain-relieving drugs. The FDA said the products are distributed nationwide.
• Mad Money Summary: Cramer believes money can be made off of California Republican Randy Cunningham's acceptance of $2.4M in bribes. Cramer said that the private defense contractor MZM has been indicted in the bribery scandal and that Congress may cancel some contracts. Cramer sees this as a positive for CACI International (CAI) and that the stock would be worth owning if there was a windfall for MZM. Cramer is also bullish on Becton Dickinson (BDX) as people are getting fatter, which is a positive for the company as hospitals will have to buy longer needles so they are able to reach muscle. Responding to a question, Cramer said that he would sell shares of Boston Scientific (BSX) and that Spectranetics was not one of the best to go along with Becton Dickinson. Cramer said that Harrah's Entertainments (HET) plan to build a casino in Slovenia made the country investable. Cramer said that "Slovenia is now officially a place that will make you money. You want to make out like a bandit? You buy Central European Media (CETV)." Crown Castles (CCI) CEO John Kelly joined Cramer last night by telephone and Cramer is hoping that shares will pullback so he can buy some.

Market Comments: The market is bouncing around after the open, briefly dipping into the red and then bouncing back. GDP growth came in stronger than expected (+4.3% vs. +4.0% consensus) . Stronger growth? Sounds great, right? Not so fast. First of all, if we want to get the Fed to stop raising rates, we need to see weaker numbers, not stronger. Second, this report is for Q3, so it ended in September. I suspect that the Q405 and Q106 reports will not be as strong.

Yesterday was a pretty big reversal day, on rising volume. That usually means that the market has a little more correcting to do. Today is month-end, so a bounce would not be surprising. The real test is how the market behaves during the first week or so of December. I have raised some cash in anticipation of more of a pullback, and will look to redeploy that money into any upcoming weakness.

long INTC, TWX