Can the S&P Halt Streak at 3?

Morning News of Note:

• WMT: Wal-Mart Under Criminal Probe in Handling of Waste Wal-Mart Stores Inc., the world's largest retailer, said the U.S. attorney is investigating the company's handling of merchandise considered hazardous waste. The criminal investigation involves whether the company is properly transporting and disposing of returned merchandise from its California stores, Wal-Mart said in a U.S. Securities and Exchange Commission filing. (Full Story) Bloomberg
• GOOG TWX: AOL Coaxes Google to Try Busier Ads Users of Google's search engine will soon see something they are not used to on the notoriously spare site: advertising with logos and graphics. And the advertisers will not be limited to America Online, whose talks with Google prompted the change in policy, according to two executives close to the companies' negotiations. (Full Story) NY Times
• BP XOM: BP, Exxon Hit With Antitrust Suit Alaska Authority Charges Two Conspire to Withhold Natural Gas From the U.S An Alaska state authority charged that BP PLC and Exxon Mobil Corp., the world's largest publicly traded oil companies, are conspiring to withhold natural gas from U.S. markets and reinforce their market power over North Slope supplies. In an antitrust suit filed late yesterday in federal court in Fairbanks, the Alaska Gasline Port Authority alleged that a series of illegal agreements and acquisitions by the companies has choked the flow of the state's vast gas reserves (Full Story) WSJ
• Biotech: Biotechnology: US 2006 top picks, expect Mid-/Sm-caps to outperform lg caps@MLCO Merrill prefers mid-/small-cap biotechs over large-caps due to relative valuation. The firm's US biotech picks are: AMGN in large-cap; PDLI & CBST in mid-cap's; THRX, NRPH, and KERX in small-caps; and ALKS in specialty biopharma. The brokers top Sells are IMCL, MATK, and ELN
• Mad Money Summary: Cramer highlighted Titanium on his show last night and says that investors have yet to realize that it has exposure to most of the things the market loves. Cramer believes that the key to Titanium is through the airline industry. Cramer said that the best way to play the industry is through Allegheny Technologies (ATI) and he would avoid Titanium Metals Corp (TIE) as the stock is expensive. Cramer said that the last time Titanium peaked, Allegheny was at $60, shares closed Monday at $33.01. Responding to a question, Cramer said that the best way to play the tightening supply of raw carbon fibers is through Cabot (CBT) and Cytec Industries (CYT) but would avoid shares of Zoltec (ZOLT). Cramer said that privatization was another way to make money and ManTech International (MANT) is the way to play it. Cramer said the government will privatize at any cost and the FBI is the next program the government will try to outsource. Cramer said that Symbol Technologies (SBL) is a good way to play radio identification tags as the company is focused on the technology. Cramer said that investors have not been giving Trump Entertainment (TRMP) "the credit it deserves." Cramer said that Morgan Stanley (MWD) made an insider buy and called shares cheap; he also said that if you are betting on Trump, you are also betting on job creation and Pat Croce, who is currently working with Trump on a casino venture in the Pennsylvania area. Cramer believes that Kirin Brewery (KNBWY) could get a boost from their small, unknown biotech unit that is working on a project to treat Avian Flu. Cramer summed up his show be saying he believes shares of Under Armour (UARM) will jump in 9 days when dealers are allowed to come out and recommend it

Market Comments: The market closed down yesterday, for the third consecutive day. Will today be the day that the streak ends? So far, the markets are under more pressure in early trading. Biotechs are down the most, while financials and energy are higher.

The PPI came in below expectations this morning, which should ease inflation fears. But bond yields are still a bit higher (4.47%), as is oil (57.45). Boone Pickens was on CNBC this morning, predicting oil will dip into the low 50s early next year, but then head higher again (55-65).

If the market can shake off this early weakness, and build into the close, it would be a positive change of character versus the past few days. C'mon Santa!

long XOM, WMT