Jim Cramer Blog

Erin Burnett started out discussing Citigroup's downgrade situation and the effect on the market in its entirety. Dow leaders today are Microsoft, Hewlett Packard and Intel. AIG, Citgroup, Exxonmobil are today's laggers. Doug Altabef from Matrix Assets recommends playing the tech market, and to remember that sell-offs are buying opportunities. Owens Corning CEO elect; Michael Thaman says that profits are suffering, earning .40 per share in 3rd quarter. He expects weakness to continue through the end of the year and into the next. Does not forecast a recession, but realizes that vulnerability in the housing market is here to stay, until other inequities in the market are rectified. Pawn Shops were the next topic. Daniel Feehan; CEO of Cash America, says the demand is high for the services they offer. With 4500 employees, and 40-50% of customers as working class homeowners, Cash America's profits raised $1.60 per share in 3rd quarter. The price of gold has helped their business as well. Citigroup is down 6.72%. Tangible capital ratios have been strained for 2 quarters, says Punk Zeagle. David Trone, of Fox -Pitt Kelton Analyitics, says Bear Stearns Hedgefunds are far too low and also that CEO; James Cayne and the marijuana speculation surrounding he and his company are not helping the situation. It has a direct effect on investors, as well as affiliates. Not a good time to buy. Oil prices retreat after rising exceeding $96/barrel. Oil prices have impacted the cruise business. Adam Goldstein of Royal Carribbean Cruise Lines, says with oil prices raising 50% in the past year, giving people the opportunity to travel across the world is the best vacation for the price. In lour of the crude prices of fuel, business is still booming and they are profiting. Stop Trading with Jim Cramer was next. He says Coca-Cola is the way to go. Says employment based information is inaccurate, because it does not reflect the condition of the economy. Hewlett-Packard is his tech pick of the day. David Faber says Time Warner (TWX) is preparing cable spin. Splitting off 85% of company by the end of the first quarter of next year, a stock split will be available between Time Warner and Time Warner Cable.

Labels: Citigroup Inc., CNBC, Crude Oil, Erin Burnett, MER, Street Signs, street signs recap