Turnaround Tuesday?

Morning News of Note:

• MA: MasterCard May Face Probe Despite End of U.K. Inquiry British regulators have dropped a long-running antitrust inquiry into MasterCard International Inc.'s fee structure but are keeping open the possibility that they could launch a new investigation next year. An appeals tribunal yesterday set aside a finding made in November by the Office of Fair Trading in which the regulatory agency determined that MasterCard's fee structure was anticompetitive and should be changed. (Full Story) WSJ
• MCD: Drive-Through Tips for China The restaurant placemats tout "a brand new way of dining. It's fashionable and time-saving" -- and it is one way McDonald's Corp. is trying to explain drive-through eating to Chinese customers. Executives of the restaurant chain plan to announce today a deal with China's largest gas retailer, state-owned Sinopec Group, to build drive-throughs at filling stations across this increasingly car-obsessed country. (Full Story) WSJ
• Drilling in Florida: Chinese oil rigs off Cuba put pressure to allow oil, gas drilling near Florida The presence of Chinese oil rigs along the coast of Cuba and a new attempt in Congress this week to tap the eastern Gulf of Mexico are putting pressure on Florida to allow American companies to drill for oil and natural gas near the state's shores. Drilling advocates unveiled a proposal on Monday that would remove the federal ban on drilling 100 miles beyond the coast and offer states financial incentives to allow it closer. (Full Story) Sun-Sentinel
• AAPL MSFT: Apple, Microsoft Are in Talks With Studios to Download Films Hollywood studios are making progress toward a deal that would bring feature films to Apple Computer Inc.'s iTunes Music Store, people familiar with the matter say. But several hurdles, including pricing, stand in the way. In another sign of the growing ferment over Internet video, some Hollywood studios also have been holding talks with Microsoft Corp. about licensing movies and television shows to the company for use with a Microsoft portable device the company is considering that could rival Apple's video iPod, a person familiar with the situation said (Full Story) WSJ
• Mad Money Summary: Cramer opened his show by breaking one of his investment vows and considering an investment into an airline stock, Continental Airlines (CAL), which he feels has trading potential. He said that UAL's (UAUA) United Airlines is more likely to be taken over, but he still recommends Continental. Then Cramer compared two recent IPOs, MasterCard (MA) and Vonage (VG). Both IPOs were oversubscribed, but MasterCard had a successful opening and Vonage's IPO failed. Cramer gave MasterCard two thumbs up and said investors should buy it, but suggested avoiding Vonage, even after dropping 50%. Cramer also said that he thinks retailer J Crew is going to be hot when it goes public next week. Cramer then reviewed a mistake he made, recommending Urban Outfitters (URBN), which he was formerly bullish on. He said to avoid it, saying even after this "sickening decline" it was not cheap. In the "Lightning Round," Cramer was bullish on Smith Micro Software (SMSI), Halliburton (HAL), Nabors (NBR), Nokia (NOK), Allegheny Technologies (ATI), Companhia Vale do Rio Doce (RIO), Consol Energy (CNX), Grey Wolf (GW) and Disney (DIS), and was bearish on Hercules Offshore (HERO), Tekelec (TKLC), XTO Energy (XTO), Nektar Therapeutics (NKTR), Titanium Metals (TIE) and TXU (TXU).

Market Comments: The market is fairly flat at the open. Oil is trading higher (near $70), which is helping the energy complex. Bond yields are flat at 5.14%.

There is not a lot of economic data hitting the wires this week. So if the Fed govenors can keep their mouths shut for a few days, a tall order, then maybe the market can lift.

There has certainly been a lot of damage done to many stocks, so the healing process won't occur overnight. But I'd still like to see phase one get underway.

The brokers are the strongest group so far, so maybe they can lead today. Semis are weak, but I am hoping for a turnaround there. More steam!

long AAPL