This Week's 5 Smartest Stock Moves

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. The Kindle isn't all it's cracked up to be
Well done on the quick turnaround, Amazon.com (NASDAQ:AMZN). The leading online retailer's rep took a beating on Tuesday, when the media began reporting on a $5 million class action lawsuit that was originally unearthed by The Seattle Times. 

A handful of owners with cracked second-generation Kindles were blaming an Amazon-sold protective cover for the damage, a potentially flawed $30 accessory. Instead of turning a sympathetic ear, Amazon was charging owners $200 to remedy the situation. That's a stiff price, when you consider that new Kindles go for just $300, and that an official -- and ironic -- protective cover is being faulted.

Well, the class action lawsuit may live on, but Amazon is finally doing the right thing. Buckling to pressure, it's agreeing to replace those Kindles (and covers) at no charge. That shouldn't cost the company much, and sticking to its original policy would have cost much more in terms of credibility.

2. Posting up on Pre  
You have to admire Apple's (NASDAQ:AAPL) spunk. The latest update to its iTunes software kills the ability of Palm (NASDAQ:PALM) Pre owners to sync their smartphones to their iTunes music libraries.

Some will argue that this is a bad move on Apple's behalf. Why alienate your iTunes customers, just because they chose a Pre? Well, Apple would rather pocket hundreds by selling a subsidized iPhone than settle for pocket change from iTunes, where most of the money it collects heads back out to the record labels.

Apple is doing the right thing: hitting a competitor in the gut. The Pre has a lot more going for it than just its temporarily squashed ability to sync up to iTunes. However, Apple's move sends a message to its users that they may as well warm up to the Apple smartphone.

3. A billion and a half shiny rhinestones of cool
Speaking of warming up to the iPhone, Apple's App Store served up download No. 1.5 billion this week.

I don't know whether the App Store will ever be the goldmine that developers drool over, though. Visitors gravitate toward the free offerings, and the top paid offerings are usually priced at the rock-bottom $0.99 price point.

However, every app that's downloaded is a tiny anchor to keep that person on the iPhone -- and iPod touch -- platform. So in that sense, it's the perfect retention tool. As a bonus, it allows Apple the ability to put out shiny press releases with plenty of zeroes.

4. Breakfast at the Tiffany Network
Comcast (NASDAQ:CMCSA) is gaining some serious backing for its TV Everywhere initiative, announcing deals with HBO, Cinemax, and CBS (NYSE:CBS).

In short, if you're a Comcast subscriber, you will be able to stream online content at your command, from any of the participating cable channels that you currently subscribe to through Comcast.

This is a win-win deal. Comcast gets the mother of all subscriber retention tools, and the cable networks are able to make more money than if Comcast would be shedding subscribers.

5. Chase a tail
JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS) are giving investment banking a good name this week. Despite the turmoil that has swept the financial-services industry over the past year, both companies delivered better-than-expected results this week.

The companies are suffering on the retail-banking side, but their investment-banking strengths are seeing them through this calamitous environment.

Well played, Goldman. Nicely done, JPMorgan Chase.