SPX tests support

Morning News of Note:

• KO PEP: Coke ads to kick off Super Bowl with pregame show Rival Pepsi-Cola, which has two minutes of ad time in the game Feb. 5 on ABC, has had the Super Bowl to itself for eight years. Coke still didn't spring for in-game ads this year, but is paying to make its Full Throttle energy drink the primary sponsor of the last 30 minutes of pre-game programming before the coin toss. The Full Throttle Kickoff Show will include three ads for the drink Coke hopes can take sales from top-selling Red Bull, as well as PepsiCo's Mountain Dew Amp. (Full Story) USA Today
• GOOG: Tech Stocks' Latest Boom Hits Backlash '90s Booster Blodget Joins Voices of Caution Skepticism is growing over highflying tech stocks like Google Inc. The stock price has soared in the past year, boosted by cutting-edge software and an enormous consumer following that some say could raise the share price to $600. But a chorus of naysayers is emerging, including former Internet stock enthusiast Henry M. Blodget, who this month called the stock a potential loser whose future value could plummet to a quarter of its current $445-a-share price. (Full Story) Washington Post
• DIS PIXR: Walt Disney Is In Serious Talks To Acquire Pixar Stock Deal for Animator Would Make Jobs Top Holder Of Entertainment Giant Walt Disney Co. is in serious discussions to buy Pixar Animation Studios after months in which the two animation giants have been exploring ways to continue their lucrative partnership, according to people familiar with the matter. In the deal under discussion, Disney would pay a nominal premium to Pixar's current market value of $6.7 billion in a stock transaction that would make Pixar Chairman and Chief Executive Officer Steve Jobs the largest individual shareholder in Disney, according to people familiar with the situation. (Full Story) WSJ
• CX: U.S., Mexico Set Tentative Accord On Cement Imports The U.S. and Mexico have tentatively settled a dispute over antidumping duties that Washington has imposed for 16 years on Mexican cement, a move that could help alleviate cement shortages that have become chronic in some states. The two countries are expected to announce the agreement today, subject to final details being worked out, said two people familiar with the situation. (Full Story) WSJ
• PCs: Worldwide PC shipments grows by 16.4% in 2005-CNET.com. PC shipment growth as measured by total units was robust in 2005. The popularity of notebooks, low cost systems, and international sales fueled the expansion. Estimates for 2006 peg growth at 10.5%, but the total value of PC’s shipped are expected to increase by only 3.6% to $226B

Market Comments: The SPX declined yesterday, but found support near the 1275 level. This level coincides with the market's recent breakout earlier this month. It is also where the 20-day moving average currently resides, which can also act as support. So while the market has bent, it certainly hasn't broke.

EBAY reported earnings last night but offered weak guidance. The stock traded lower in after-hours, but this morning it is trading higher. While this doesn't make a lot of sense, I think investors might be concluding that management is being too conservative with guidance given how strong the recent quarter was.

AMD reported a really strong quarter, and that has the semis up big this morning. Brokerage stocks are getting a nice pop also, as LEH upped its dividend.

long PEP