Main market news: Further selling indicated

The Wall Street Journal gives a report card to iWork, Apple Inc.'s (NASDAQ: AAPL) Microsoft Corp.'s (NASDAQ: MSFT) Office equivalent. To summarize, Walter S. Mossberg says that while iWork '08 is "capable of turning out sophisticated and attractive word-processing, presentation and spreadsheet documents," but "isn't as powerful or versatile as Microsoft Office."

Amgen Inc. (NASDAQ: AMGN) said yesterday it will cut up 12% to 14% of its work force and has lowered its profit guidance to between $4.13 a share and $4.23 from $4.28 previously as sales were less than expected on its amnesia drug. Amgen shares are down 1.36% in premarket trading (8:06 a.m.).

Intel Corp. (NASDAQ: INTC) was upgraded by Credit Suisse from Underperform to Outperform with the analyst upping the target price from $22.5 to $35.

The Wall Street Journal speculates [subscription required] that Kraft (NYSE: KFT) may sell its Post cereals unit for as much as $3 billion. One potential buyer may be Pepsi (NYSE: PEP).

The Register speculates on what Sun Microsystems (NASDAQ: SUNW) and IBM (NYSE: IBM) may announce as their operating system agreement in their joint press conference later today.

Thomas & Betts Corp. (NYSE: TNB) announced late yesterday it is buying Lamson & Sessions Co. (NYSE: LMS) for approximately $426.6 million. The two sides valued the transaction at $450 million.

Jim Cramer opened CNBC's MAD MONEY discussing how to tell when a broken stock is on the mend: you need to do something big. Viacom Inc. (NSE:VIA) is showing this by its 250 job cuts yesterday. So Cramer is changing to being a Bull on Viacom. He said he was this way at $17 on Time Warner Inc. (NYSE:TWX). VIA now needs to focus on growing profits rather than revenues. Sumner Redstone is back, according to Cramer; and he thinks that they will do another big buyback or that a private equity firm could swoop in and buy it. VIA's 52-week range is $32.42 to $43.87, and it closed at $39.98; so at $40.55 after-hours this one has already seen some of the worst behind it. VIA is still under where it was when it split from CBS.

Cramer also said that private equity has a ton of money tied up, with Goldman Sachs alone raising $19 billion. Cramer said they can borrow up to 10 times, and they are willing to pay big premiums. He thinks Lamson & Sessions (NYSE:LMS) is the one they should pay $35 to $40 to acquire. His private equity master-plan works, but he says he still only wants to look at companies if they make sense. If it was valued like PW Eagle that just got a bid it would be valued at $35 to $38 today. He said it didn't even move when LMS hired a banker. LMS only has a $445 million market cap and Cramer thinks this should be rolled with American Standard (NYSE:ASD) now that they are selling the plumbing business; and then he'd buy the Home Depot (NYSE:HD) building and supply business. Cramer thinks this would be a big powerhouse company. He said this would be a vertically integrated company that could easily be public again in 3-years.