Monday Morning Musings

Morning News of Note:

• INTC AMD: Intel's Power Play: New Server Chip Intel Corp. finally has a chip for server systems to brag about. But prying its rival out of data centers won't be easy. The new version of Intel's Xeon line of chips, to be formally announced at an event in San Francisco today, represents the company's most significant step to close a performance gap that competitor Advanced Micro Devices Inc. opened in April 2003. Intel says the new product, code-named Woodcrest, is more than twice as fast as earlier models and consumes 40% less power. (Full Story) WSJ
• NTAP: NetApp enters SMB market Network Appliance plans to announce Monday it has entered the small-medium business market with a storage product intended to expand its footprint in an area increasingly crowded with rivals. NetApp is launching StoreVault S500 as its new product line for the small-medium business (SMB) market, and has created as a new division around the effort. For NetApp, the move into the SMB market brings the 14-year-old company full circle, analysts say. (Full Story) CNET
• DCX: Autos. Will Chrysler's Move Be Smart?: DaimlerChrysler AG plans to announce next week that it will launch its tiny, two-door Smart car in the U.S. in 2007, a bid to turn around the unprofitable small-car unit, people familiar with the matter said. Making the Smart car business profitable has been an important task for Chief Executive Dieter Zetsche since he took the top post Jan. 1. The unit has been unprofitable every year since its first model in 1998. (Full Story) WSJ
• MSFT: Microsoft Wants Your Office Telephone The founding vision for Microsoft Corp. was a computer on every desk, each one running Microsoft software. The next dream is every office phone. Today Microsoft is set to announce a broad initiative into the business telephone market, including desktop phones and videoconferencing devices designed by Microsoft and sold by partners, with some available as soon as June 2007. (Full Story) WSJ
• Mad Money Summary: Cramer opened his show on Friday suggesting viewers get into J.C. Penney (JCP), First Marblehead (FMD) and Garmin (GRMN), which should all get marked up at the end of the quarter. Cramer also said to look at Palm (PALM) and Research in Motion (RIMM), which are set to report on Thursday after the close. Then Cramer recommended a high-growth stock, Panera (PNRA), a consistent growth stock, General Mills (GIS), and a value stock, Walter Industries (WLT). Cramer then discussed acquisitions after the Anadarko (APC) acquisition of Kerr-McGee (KMG) and Western Gas (WGR). He said he believes Devon Energy (DVN) will be the next big acquisition. He also believes that BP (BP) and Royal Dutch (RDS.A) need to make some acquisitions. In the "Lightning Round," Cramer was bullish on Coherent (COHR), Newell Rubbermaid (NWL), Alliant Techsystems (ATK), Pantry (PTRY), Serologicals (SERO), Baxter (BAX), Rio Tinto (RTP), BHP Billiton (BHP), Foster Wheeler (FWLT), ABB (ABB), Schering-Plough (SGP), Volt Information Sciences (VOL), Basic Energy Services (BAS), Hewlett-Packard (HPQ), Best Buy (BBY) and Circuit City (CC), and was bearish on Sirius Satellite Radio (SIRI), Pactiv (PTV), AT&T (T), Sprint (S), Verizon (VZ), Casey's General Stores (CASY), Adtran (ADTN), Shaw Group (SGR), Merck (MRK), Chicago Bridge & Iron (CBI), Teva Pharmaceutical Industries (TEVA), Dell (DELL) and RadioShack (RSH).

Market Comments: The market had a slightly positive open, and has held a first hour test to remain in positive territory. Bond yields are up a touch (5.23%), and oil is down a touch, which is weighing on the energy sector.

Tech looks pretty strong in early trading, with the SOX on of the standout sectors so far.

Of course, all eyes this week will be on the FOMC accouncement out later in the week. Another 25 basis points is baked in here, but there will be considerable scrutiny on the accompanying language. Many are talking about another 25 basis points at the following meeting, but I think the Fed would do better to pause here.

long INTC