Payrolls rise less than expected

Morning News of Note:

• MSFT: XBOX'S SHORTAGE FRENZY Microsoft Corp.'s Xbox 360 video-game machine is already sold out on some Web sites including Wal-Mart Stores Inc., a sign the company may have shortages when the console goes on sale this month. Wal-Mart's site tells people to go to a store at midnight on Nov. 22, the day Xbox is released in the U.S. Amazon.com Inc. says the system is unavailable in the U.S. and warned U.K. buyers they may not get it by the holidays. (Full Story) NY Post
• MRK: Merck Prevails in Second Vioxx Case on Heart Attack The drug giant Merck won decisively Thursday in the second Vioxx-related personal injury case to go to trial, an outcome that legal experts say could slow the flood of lawsuits against the company A nine-member jury in a state court here found by an 8-to-1 vote that the painkiller Vioxx had not caused Frederick Humeston, a 60-year-old Idaho postal worker, to have a heart attack in September 2001. Mr. Humeston, who survived, testified in the case. (Full Story) NY Times
• GDT: With one day left to seal the deal on Johnson & Johnson's $25.4 billion acquisition of Guidant Corp., New York Attorney General Eliot Spitzer said on Thursday he was suing the Indianapolis-based medical device maker for concealing information about a design flaw in a heart defibrillator. Shares of Indianapolis-based Guidant fell 4.7 percent, or $2.83, to close at $57.57 in trading on the New York Stock Exchange. J&J stock dropped 10 cents to $61.20. (Full Story) Boston Globe
• HANS: Hansen Natural-HANS removes proposal to boost authorized shares: HANS had proposed to hike authorized shares to 100M and plans to reintroduce the proposal at a later date

Market Comments: The US economy added 56,000 jobs last month, fewer than the 100,000 economists were looking for, but still showing job growth after the hurricanes. Energy stocks are taking a hit this morning, while biotechs are adding to recent gains.

I am not expecting a lot of fireworks today. Traders will likely take some profits ahead of the weekend, given the nice rally we have had this week. I still expect dips to be bought in the near future, and think recent breakouts will continue to work as you now have a stronger market backdrop.

long MSFT