Stocks were lower Tuesday as investors were discouraged by a stalemate over fresh government aid and bank shares declined following earnings reports.
The Dow Jones Industrial Average fell 84 points, or 0.29%, to 28,753, the S&P 500 was down 0.38% and the Nasdaq declined 0.02%.
TheStreet’s Katherine Ross discussed breaking news in the stock market on Street Lightning. Cramer spoke about the earnings of both Citigroup and JPMorgan as well as the impact of the restructuring at Disney.
JPMorgan: Buy Or Sell?
JPMorgan Chase & Co. (JPM) – Get Report posted stronger-than-expected third-quarter earnings Tuesday as the bank set aside a much lower amount to cover ad loans amid an improving domestic economy.
JPMorgan CEO Jamie Dimon also said the bank could resume its share buybacks in the first quarter of next year, depending on changes to the Federal Reserve’s cap on shareholder returns, which was extended until the end of 2020 earlier this spring.
Cramer said he didn’t see a lot of growth in JP Morgan. “They’re doing well. They’ve got the fortress balance sheet. They’re without a doubt the best bank. But I think they’re not going to have anything near what Goldman has. Goldman is a training operation.”
Citigroup: Buy Or Sell?
Citigroup’s (C) – Get Report earnings for the three months ending in September were pegged at $1.40 per share, down 32.3% from the same period last year but firmly ahead of the Street consensus forecast of 93 cents per share. Group revenues, Citigroup said, fell 6.8% to $17.3 billion, edging just ahead of analysts’ forecasts of a $17.2 billion tally.
Cramer said Citigroup is perceived as being a dark horse. “It yields 4.6%. It has a $71 tangible book value. It’s seemingly impossible that you’re going to have such a bad