SPX Nears 50-day Support

Morning News of Note:

• VNO: Close to historic deal: Filene’s landmark vote may be key for Vornado A major New York developer is wrapping up a deal for downtown Boston’s landmark Filene’s building, with a key meeting expected today at City Hall. Representatives of Vornado Realty Trust, which is buying the building, along with seller Federated Department Stores, will meet with city officials to discuss a proposal to grant historic landmark status to the turn-of-the-century building and the Downtown Crossing block it sits on, city officials confirmed. (Full Story) Boston Herald
• Price at the Pump: Next Stop: $3 Gasoline The best advice for the summer driving season might be: "Walk." Memorial Day is more than a month away, and already gasoline prices are on the march. Yesterday on the New York Mercantile Exchange, gasoline for delivery in May closed at $2.0092 a gallon, the highest price for wholesale gasoline since October of last year. (Full Story) WSJ
• JNPR ALA LU: Heard on the Street... Will Alcatel-Lucent Deal Put Juniper in Play? The merger agreement between Alcatel SA and Lucent Technologies Inc. may push another company onto the auction block: Juniper Networks Inc. Following word of the Alcatel and Lucent talks to establish a trans-Atlantic telecommunications-equipment giant, Juniper's stock jumped amid speculation that it could be the next company snapped up in the rapidly consolidating telecom-equipment sector. (Full Story) WSJ
• GOOG: Google reportedly wins rights to new search technology-FT: Google (GOOG) is reported to have won, against rival bids from Yahoo (YHOO) and Microsoft (MSFT), the rights to a new search technology. The technology offers instant answers to queries without having to go to another website. While Google has not made a formal announcement, the University of New South Wales in Australia said last year in a press release that the new technology "could revolutionise search engines
• Mad Money Summary: Cramer opened his show recommending National Oilwell Varco (NOV), a company which designs, constructs and manufactures oil rigs for companies like Exxon Mobil (XOM). National Oilwell is not levered to the price of oil, but to the shortage of in oil rigs. Then Cramer reintroduced the stock of the week. His pick for this week was NuVasive (NUVA), a medical device maker. He reminded his viewers that the "Stock of the Week" does not mean "if you buy NuVasive today that you'll have made money by Friday." It is to "highlight something that could be really big." Then Cramer discussed Avaya (AV), which, to his surprise, he believes is now worth buying. He says the company is one of the best corporate VoIP plays and the stock is dirt cheap. Ron Duncan, the president and CEO of General Communication (GNCMA), then joined Cramer on the show. General Communication is an Alaskan telecom company, and the CEO said he sees accelerated growth mirroring Alaska's booming economy. In the Lightning Round, Cramer was bullish on Best Buy (BBY), UnitedHealth Group (UNH), NightHawk Radiology (NHWK), Brocade Communications Systems (BRCD), Marvell Tech (MRVL), Juniper Networks (JNPR), Cisco (CSCO), Finisar (FNSR), Companhia Vale do Rio Doce (RIO) and Corning (GLW), and was bearish on Circuit City (CC), SanDisk (SNDK), NL Industries (NL) and National Beverage (FIZ).

Market Comments: The market reversed most of yesterdays gains into the close, and this morning looks like more of the same. Nearly all sectors are selling off, except energy, and the SPX is now near its 50-day support.

Breadth was negative yesterday, and the Hi/Lo index on the NYSE hit its lowest level (going negative) since last December. I think this is another indicator that this correction could have more bite to it than we have seen year-to-date.

long GOOG