Mixed Open

Morning News of Note:

• AAPL: Apple laptop demand slows, iPod backlog rises Demand for Apple laptops has begun to slow this month, according to data shown to AppleInsider. Meanwhile, demand for nearly all versions of the company's iPod digital music player appears to be unprecedented. With a little more than two weeks left in the holiday shopping season, orders to Apple's manufacturing facilities for both consumer and professional laptops appear to be on the decline. (Full Story) Apple Insider
• YHOO: Yahoo Phone Service Yahoo is entering a suddenly crowded field, offering telephone service through its instant-messaging system that will let users dial regular phone numbers using their computers or receive calls from conventional phones. The company has not set a firm date for the availability of the new paid features to the mostly free Yahoo Messenger service but indicated that the service would begin soon (Full Story) NY Times
• CSCO: Cisco Girds to Handle Surge in Web Video Cisco Systems Inc. made its name supplying the gear that controls the movement of data over the Internet. Now that online video appears poised to boost Internet growth, Cisco is moving to supply gear that moves video off the Internet and into the home. Two recent acquisitions are the clearest sign yet that the company, which has $24.8 billion in annual revenue, sees bandwidth-hungry video as a significant future market. (Full Story) WSJ
• FPDs: Samsung said co cant meet all orders for LCD TV panels, sees global LCD TV panel mkt shortage in 2006, over supply in 2007; co lowered LCD TV industry shipment est; sees 2006 global shipments 35m units, 2007 shipments 49m units, 2008 shipments 63m units
• Mad Money Summary: Jim Cramer believes that "2006 will be a huge year for mergers" and that UST (UST) is a likely takeover target. Cramer believes that R.J. Reynolds, a subsidiary of Reynolds America (RAI) would be a likely acquirer and the takeover could be at a 25%-40% premium. Responding to a question, Cramer said that he would avoid Lloyds TSB Group (LYG) and stick with Prudential (PRU) and MetLife (MET). Cramer also believes that C.R. Bard (BCR) is also a likely takeover target, but he is interested in shares despite that. Cramer believes that a takeover would be around $100 a share and that the loser of the Johnson & Johnson (JNJ), Boston Scientific (BSX) battle over Guidant (GDT) will be the likely acquirer. Herb Greenberg joined Cramer on his show last night to talk about Harley-Davidson (HDI) and Sears Holdings (SHLD). Greenberg said that Harley-Davidson has been storing extra bikes in warehouses for dealers to store the bikes they cannot handle, the question is, and did Harley recognize sales of the bikes in the warehouses as revenue. Greenberg said he has called the company and is waiting on a response. Greenberg was cautious on Sears Holdings due to Eddie Lamperts letter to shareholders revealing that "there is no grand strategy." Cramer said "Harley, I don't like. Sears? Ignore that man." Cramer said he wants to back up the truck on trucking stocks due to new rules that are set to go into affect in 2007. He likes Paccar (PCAR) and Volvo (VOLVY).

Market Comments: The market opened down slightly, but most of the individual stocks on my screen are mixed. Oil service and drug stocks are up, as are a handful of techs. TXN reiterated guidance last night, and QCOM raised guidance this morning. Hopefully those two datapoints bode well for INTC's mid-quarter update tonight, although INTC is much more levered to personal computers as opposed to wireless.

GS and BSC were downgraded this morning, which is weighing on the financials. Today could very well be another day of consolidation.

long INTC