Slew of bad news to wake up to. Freeport (NYSE: FCX) (Cramer's Take) eliminates its dividend to conserve cash as copper has had an unmitigated decline. Impairments coming; ugly, but somewhat predictable given the stunning stock drop. Research In Motion (NASDAQ: RIMM) (Cramer's Take) overnight becomes Nokia (NYSE: NOK) (Cramer's Take) or maybe even Garmin (NASDAQ: GRMN), (Cramer's Take) as the commoditization of tech continues apace. We can sell everything cell-phone-related off that. Tech down again.
Too bad, because it wrecks the rally from yesterday and confirms -- endlessly -- how bad this market is.
It's also too bad because China was up big last night, which I believe will put in a bottom to the mineral and steel market components someday. Pricing will get tight eventually as U.S. Steel (NYSE: X) (Cramer's Take) and Freeport are taking out a huge amount of capacity. They have to; the pricing falls are that devastating. There will be plenty of companies in these industries that simply won't survive because of the pricing.
The one good bit of news: We won't be set up for a huge fall if the Brits and the ECB don't slash big. Could they be waiting for $40 oil to make their move?
Everyone wants to call a bottom here. I continue to think we can hold prices down about 1,000 points, but there is too much daily bad economic news to stay up here.
The bad news is for real -- tech, oils, minerals are headed back down. Those are important props. If done correctly by the bears, you can take everything down on these, as we are about to see some hideous November retail numbers.
Just a crummy market because business is, well, crummy.
And just because systemic risk is off the table, earnings are still on the table, and those are just plain bad.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Freeport-McMoRan.
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Reader Comments (Page 1 of 1)
12-03-2008 @ 10:25AM
dominick albano said...
solution to our problems. instead of bailing out wall street and all the fat ass cats, why not give everyperson earning 100,000 or less a grant of 1,000,000 to pay thier depts and buy new cars, pay mortgages. no drugs or gambleing allowed or expenseve vacations.It would cure the recession and not cost as much as the bailout cost .people would pay taxes on the money received.
12-03-2008 @ 11:07AM
Anonymous said...
How about GM ghost payrollers. I think an investigation should be conducted on GM District managers who don't leave their home and receive high salaries & bonuses either because they married into the position or have family members involved in GM. Salary is being paid to a general manager who never leaves home and cleans his home, and spends hours working on his yard and pool at the expense of GM He is also given a gas guzzling SUV. Congress should look into paychecks for district managers.
12-03-2008 @ 2:19PM
Reader said...
I agree with Dominick's statement. Let them file bankruptcy protection and give the main and side street Americans the money. None of the car companies will take a salary cut. Trust me. They say they will, but that's all smoke and mirrors. If they could not fix the problem a year and a half ago, what makes Congress think the bailout will help thejm now. Its putting off what should happen now. Restructure the enitre industry? FORGET ABOUT IT!!!!!! NO BAIL, NO MONEY.
12-03-2008 @ 4:41PM
nick said...
Crammer I don't know who is the most ass hole guy around, you or Jack Caffery and Wolf Blitzer, you scum bags from the left are all alike. Your the only guy I know except some guys who work the rides at the fair who can smile when your telling someone buy this or that and then you go in and by low and sell high and laugh with your ass holes at MSNBC all the way to the bank.
12-03-2008 @ 9:16PM
Landry said...
You know I used to listen to you on how to make money in the market...now you tell us the market is bad.....wow you have become one of them!!!!!!!!!!!!