Jim Cramer Blog

Stocks take a hit, led by CITI Bank, following three straight monthly gains. Oil prices retreat after reaching $96/barrel. Melissa Lee says $45/share will be the probable cut in stock for Citigroup. CNBC correspondents discuss the current condition of the market, under the headline; Markets: Fear of the unknown. David Kotok from Cumberland Advisors says quality of bank earnings will be much higher in the upcoming year. Peter Bookvar disagrees, and believes that you cannot solve the problem of high liquidity by adding more liquidity. Steve Liesman says companies like Citgroup will be vulnerable for months to come. Bill Seidman adds that Citgroup has been outperformed, compared to other banks. David Kotok makes a return, saying that mortgage finance issues are rippling out, despite how most groups like to keep them contained, and is likely that fed rate cuts will inevitably be the bi-product of these inequities. Microsoft, Coca-Cola, Intek, Merk and Hewlett Packard are leaders today. Southwest Airlines chairman; Herb Kelleher was on next to discuss American dependence on crude oil, as well as the relative consequences. He says Americans consume over 45% of the crude oil the world has to offer. He sights fuel efficiency and alternative fuels as ways to improve, as well as being more open to ideas pertaining to alternative fuel sources. He says we need to pursue alternative sources for decades to avoid crisis, and to diverge from our current course of mass consumption of the world's energy resources. Affiliated Computer Systems (ACS) is experiencing some problems with exec's communicating confidential and inappropriate information to competitors. They will be replacing their independent directors in the very near future.

Labels: ACS, Citigroup Inc., CNBC, HP, MSFT, The Call