Morning Look

Morning News of Note:

• AAPL EBAY: Preloaded iPods prompt legal ponderings A blossoming trade in Apple iPods and other digital devices pre-loaded with movies, TV shows and thousands of songs is raising alarms and legal questions. For the past couple of years, people have sold their used iPods and other music players filled with music on eBay and other auction sites with little notice. (Full Story) USA Today
• F: Ford Will Shed 28% of Workers In North America Car Maker to Close 14 Plants As It Joins GM in Overhaul Of Detroit's Business Model Ford Motor Co. has made it official: Detroit is ditching its business model of the 1990s, and the cost now totals more than 60,000 jobs at Ford and rival General Motors Corp. Ford yesterday announced plans to close 14 North American factories, including seven assembly plants, and slash up to 34,000 North American jobs over the next six years. (Yesterday) (Full Story) WSJ
• GOOG: Google-GOOG executives agree to $1 salaries again-CNet.com. Google's three top executives, chairman and CEO Eric Schmidt, and co-founders and co-presidents Larry Paige and Sergey Brin, have agreed to be paid annual salaries of $1 each for 2006, the same salaries they received last year. The three will rely on stock options and grants from the company's stock for their pay.
• TGT: Target-TGT sees January comps up 4.5%-5% vs prior for up 3%-5%
• US Economy: Fed Gov Olseon said Fed watching factory use, energy and housing market; said US has dynamic and very stable economy; sees serious consequences if deficits last long term (Monday)

Market Comments: The market is bouncing at the open. Oil is trading lower so far, and bond yields are up to 4.38%. Semis are leading the way in early trading, followed by housing stocks and brokers. Retailers are also catching a little bid (TGT affirmed strong sales).

TXN did not report great earnings, but I think the selling pressure in chip stocks has dried up for the time being. BRCM and MRVL continue to rally, as does SNDK.

I am watching for Friday's selloff to lead to a couple of up days in the market. But after that I want to see if there is another stab lower for the indexes. I want to see if Friday's lows hold, or where the market has to trade down to in order to find support.