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Steve Jobs addressed the MacWorld Expo today with a movie rental service through iTunes and a new ultralight Mac notebook, the MacBook Air.

Jobs pulled the MacBook Air out of a manila envelope to demonstrate its slimness. At about 3/4 of an inch thick, the $1,799 notebook weighs 3 pounds, has a 13.3 inch screen and a five hour battery.

The notebook does not include a DVDR slot, but contains software that will allow users to play DVD’s remotely from another computer.

Jobs also responded to some criticisms about Apple’s environmental record by creating the MacBook Air with no mercury in the display, and a PVC and bromide-free circuitboard.

iTunes Movie Rental is available right now with a software download and offers new releases for $3.99 and older rentals for $2.99. You’ll have 30 days to view the movie, but must view it entirely within 24 hours of starting it. You will be able to move it between your iPod, Mac, and Apple TV if you wish.

Jobs also announced improvements to Apple TV and the iPhone.

However, as of my writing this, Apple’s stock is down over ten percent. Perhaps investors were expecting a little more from the speech.

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