Google just updated their Reader app for Android to version 0.9.2. This update will require you to manually update, as it required additional permissions from the previous version.
Recent changes in this version include:
– Unread count widget: choose any feed, label, person, or “all items” and get the unread count on your home screen.
– News ticker widget: cycles through items on any stream in Reader. Clicking any headline takes you to the article. Clicking the folder takes you to that stream.
– Mark previous as read: scroll down your reading list, hit “Mark previous as read” at any time to only mark things above the screen as read.
As with most updates, various bugs have also been addressed.
Source: Google Mobile Blog