Now That's More Like It

Morning News of Note:

• AUO: AU Optronics Cuts LCD Output In Bid to Stabilize Falling Prices AU Optronics Corp. has cut production of liquid-crystal displays because of bloated inventories, a move that could bring more stability to LCD prices by the third quarter if other companies follow suit, a company executive said. "You have to have discipline every month to adjust inventory," Hui Hsiung, executive vice president of AU Optronics, said in an interview. "If others follow, that will help prices stabilize by the third quarter." (Full Story) WSJ
• GOOG: Google to Launch Government Search Site It's finally happening: The ever-expanding Google Inc. is making its move on the federal government. Today the company plans to announce a new online product aimed at being a one-stop shop for searching federal government Web sites. The launch of Google U.S. Government Search, http://usgov.google.com , targets federal employees who often need to search across several government agencies. (Full Story) Washington Post
• Click Fraud / GOOG YHOO: Web Ads Present New Front in Hacker Wars The rise of "pay-per-click" online advertising, celebrated for turning Google Inc. and Yahoo Inc. into enormous businesses, is proving a boon for cyberthieves. Hackers are using increasingly sophisticated computer programs to automate phony clicks on Internet ads and then hide the click fraud from detection. (Full Story) WSJ
• NTRI: Heard on the Street... Investors Weigh NutriSystem's Stock Run As NutriSystem Inc.'s stock price has ballooned along with its profits, the question is whether the shares are due for a crash diet or just some nips and tucks. The Horsham, Pa., diet-products company has come a long way since Michael J. Hagan and fellow investors bought 59% of its shares for just 62 cents each in December 2002. (Full Story) WSJ
• AAPL: More European countries are pressuring Apple Computer Inc. to open its iTunes Music Store so purchased songs could be played on any portable music player and not just the iPod. Consumer agencies in Norway, Sweden and Denmark last week sent a joint letter to Apple, saying the iPod maker is violating their contract and copyright laws with its product usage restrictions. The agencies could take Apple to court if they're not satisfied with the answer. The agencies could seek injunctions against Apple, banning iTunes from their markets. - NY Post
• Mad Money Summary: Cramer opened his show by telling his viewers its time to sell ethanol stocks, as "the ethanol fad has come to an end." Soon the market will be flooded with ethanol stocks, because of today's IPO of Verasun Energy (VSE) and the upcoming IPOs of other ethanol stocks. Cramer's previous ethanol recommendations include Archer Daniels Midland (ADM), The Andersons (ANDE) and MGP Ingredients (MGPI). Cramer looked into his "Mad Mail" and answered a viewer who asked if it looks like Microsoft (MSFT) has bottomed. Cramer answered that he owns Microsoft for his Action Alerts PLUS charitable trust and he is getting killed, and did not recommend buying it. In the "Lightning Round," Cramer was bullish on Yamana Gold (AUY), Goldman Sachs (GS), Chesapeake Energy (CHK), Yahoo! (YHOO) and Broadcom (BRCM), and was bearish on Harmony Gold Mining (HMY), Hansen Natural (HANS), Tellabs (TLAB), GSI Commerce (GSIC), Energy Conversion Devices (ENER), Conexant Systems (CNXT) and Waste Management (WMI).

Market Comments: The market is bouncing sharply in the first hour of trading. The SPX is pushing on 1% gains, while the RUT (small-caps) is up nearly 2.5%. And the brokers are rallying also. Not bad.

Of course, no one will trust this rally, which makes some sense. Short-sellers have been in charge lately, and won't give up easily. They will likely try to lay on this market at some point today, and crush the spirit of the bulls. Don't think this happens? Trust me...it does.

The 10-year yield has broken back above its 50-day, and is trading at 5.09%. We don't want to see it continue to trend higher. Oil is also up a bit this morning, but still below $70.

The volatility indexes are plummeting so far. It will be interesting to see how other measures of investor anxiety come in today. More on that later.

long AAPL, GOOG