How long will the bounce last?

Morning News of Note:

• AMZN: Coming Attraction: Downloadable Movies From Amazon Even as it pushes into the online music and book businesses, Amazon.com Inc. is busy preparing another digital entertainment offering: downloadable movies. People familiar with the situation say the online retailer is talking with movie studios including General Electric Co.'s Universal Pictures, Viacom Inc.'s Paramount and Time Warner Inc.'s Warner Bros. about making their content available on its site, both for Internet rental and purchase (Full Story) WSJ
• GLW: Corning-GLW co says U.S. District Court has issued ruling in its favor GLW said a U.S. District Court has issued a ruling in its favor. GLW said the court's ruling declared fully enforceable a patent exclusively licensed to GLw for optical biosensors that enable label-independent detection of chemical, biochemical and biological substances in a sample. The Court further concluded that GLW is entitled to a permanent injunction against SRU Biosystems of Woburn, Massachusetts, a privately held company, which infringed on the patent and induced a customer to infringe the patent through its testing activities. GLW has been instructed to submit an order for both injunctive relief and final judgment (last night)
• STEM: Stem-Cell Test Is Set for Children With an Incurable Brain Disease Scientists in Oregon are preparing to begin a clinical trial in which they will test transplants of human neural stem cells as a treatment for young children with an incurable brain disease. On Wednesday, a review committee at the Oregon Health & Science University in Portland cleared the proposed trial, which will involve the transplantation of "purified" neural stem cells developed by StemCells Inc., a biotechnology company in Palo Alto, Calif. (Full Story) WSJ
• Mad Money Summary: Cramer opened his show by recommending buying OSI Systems (OSIS), which is a great name in the homeland security space. Others include Raytheon (RTN), L-3 Communications (LLL), Viisage Technology (VISG) and FLIR Systems (FLIR). He believes OSI Systems is a long term buy. Then Cramer discussed the cigarette industry. He says the amount tobacco companies must pay as part of the 1998 big tobacco lawsuits is decreasing, which will create better-than-expected earnings for companies such as Altria (MO). He still believes there is money to be made in Altria, which his charitable trust owns. Then Cramer discussed commercial real estate, where demand is outpacing supply. He suggests Vornado Realty Trust (VNO), a "best of breed" that owns a large real estate portfolio in New York. In the Lightning Round, Cramer was bullish on Vitesse Semi (VTSS), Sara Lee (SLE), Palm (PALM), UnitedHealth (UNH), Applied Micro (AMCC), Cummins (CMI), Paccar (PCAR), OptionsXpress (OXPS), Accenture (ACN), Transoean (RIG), Halliburton (HAL), Eagle Materials (EXP), Seagate (STX), Pepsi (PEP), Hansen (HANS), Crystallex (KRY), Sirna Therapeutics (RNAI) and Electronic Data (EDS) and was bearish on XTO Energy (XTO), Archer Daniels Midland (ADM), Research In Motion (RIMM), Krispy Kreme (KKD), Shanda Interactive (SNDA), Sirenza Microdevices (SMDI), Lexar Media (LEXR) and Pepsi Bottling Group (PBG).

Market Comments: The market is getting a strong bounce in the first hour of trading. The jobs report (+243k) was a little better than expected, and that has bond yields moving higher. The 10-year is currently at 4.78%. Oil is back down below $60 currently.

This bounce could be sparked by short covering, since the shorts have been making money all week and may look to take profits ahead of the weekend. We'll have to see if this early strength can last into the close. If not, it could take more wind out of the bulls' sails.

The COMP has been down for 6 straight sessions, which is rare. Next week is triple witching (simultaneous expiration of options, futures, etc.), so there could be additional volatility.

long GLW