Here are 2 different links, you can see that the President doesn't take anything out of his pocket, but seems to pick up a pen from the podium.
Kerry on the other hand clearly has removed something from his breast pocket with his back to the audience.
http://www.dailyrecycler.com/blog/2004/10/winners-never-cheat.html
http://www.boston.com/news/special/politics/debate_video/sept29/1.html
In the 2nd link, you can skip over the commercial at the beginning, by clicking on the forward arrow.
Thanks!