Apple Goes to 'Boot Camp'

Morning News of Note:

• MDT STJ BSX GDT: Medical Devices: Expect STJ news to "spill over" into the other device makers@UBSW The firm said that while ICD concerns are not new, they do expect near-term volatility and have lowered their target for MDT to $70 from $75 and STJ to $55 from $60.
• HANS BUD: A-B pours cold water on rumor about drink maker Anheuser-Busch Cos. won't seek to grow its energy-drink business through an acquisition, squelching speculation that the brewer might buy Corona, Calif.-based juice and energy-drink maker Hansen Natural Corp. Though Anheuser-Busch already makes nonalcoholic energy drinks 180 and 180 X3, trade publication Beverage Business Insights reported last week that the brewer is talking with Hansen about a possible partnership. (Full Story) St. Louis Post-Dispatch
• WMT: Wal-Mart Offers Incentives Aimed At Smoothing Its Urban Expansion Wal-Mart Stores Inc., seeking to reduce local resistance to its expansion into urban markets, said it plans to build 50 stores in the next two years in neighborhoods with high unemployment or crime rates, on previously contaminated sites or in vacant shopping centers in need of revival. The nation's top retailer, criticized for its business and labor practices, said it will establish economic-opportunity zones around 10 of those new stores. (Full Story) WSJ
• TOL: A Suburban Builder Heads for the City Toll Brothers is perhaps the best-known builder of luxury homes in the country, having honed the art of upper-middle-class living into the science of large-scale suburban development. But now the company is entering the New York City real estate market, with five sites in various stages of development from the East Village to the Gowanus Canal neighborhood in Brooklyn. For a national homebuilder that has specialized in upscale suburban houses, the obvious question is, Why New York City and why now? (Full Story) NY Times
• Mad Money Summary: Jim Cramer opened his show discussing what he believes will be the next energy drink play, National Beverage (FIZ), which makes energy drink Rip It. Then Cramer discussed Chinese online mobile commerce play TOM Online (TOMO), which is the biggest player in China's wireless download industry. He is also excited about the stock because it consistently underpromises and overdelivers, which he refers to as "UPOD." Then Cramer welcomed arch-rival Herb Greenberg to the show. Greenberg said he dislikes Marchex (MCHX) because the stock has been flat, and dislikes NetLogic Microsystems (NETL) because too much of its business comes from Cisco (CSCO). In the Lightning Round, Cramer was bullish on Broadcom (BRCM), Marvell (MRVL), Level 3 (LVLT), Garmin (GRMN), Dynegy (DYN), Conexant (CNXT), Mindspeed (MSPD), Trump (TRMP), Smithfield Foods (SFD), Microsoft (MSFT), NYSE Group (NYX), Avanex (AVNX), Finisar (FNSR), Burlington (BNI), PW Eagle (PWEI), Cheescake Factory (CAKE), Ruth's Chris (RUTH), Seitel (SELA), Neurocrine (NBIX), Applied Micro Circuits (AMCC) and Procter & Gamble (PG), and was bearish on LSI Logic (LSI), @Road (ARDI), Chiquita Brands International (CQB), Johnson & Johnson (JNJ), Continental Airlines (CAL), Southwest Airlines (LUV), AMR (AMR), Steak n Shake (SNS), Oplink Communications (OPLK) and Oil States International (OIS)

Market Comments: The market opens with a nice bid under it again. You know I prefer a market that opens weak and builds throughout the day, but lately we have not seen the late-day selloffs that are so disheartening. Of course, now that I've pointed that out...

Bond yields are lower this morning (4.84%), which is a plus. Chip stocks and homebuilders are getting a bounce, while energy and brokers are seeing some profit taking.

Apple (Nasdaq:AAPL) is getting a strong bounce this morning after announcing its new "Boot Camp" software that allows Macs to run Windows XP software and applications. This should help Macs gain some market share vs. PCs. It won't do anything to help the current quarter, which is rumored to be slightly weak, but it could be a big boost for the holiday selling season, and maybe even back-to-school.

long MDT