Thursday Turmoil

WASHINGTON (AP) -- The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch.

The action came one day after Fed Chairman Ben Bernanke and all but one of his central bank colleagues voted to slice a key interest rate. It was the second time in six weeks that policymakers acted to protect the economy from the effects of the housing downturn and credit troubles.

The Federal Reserve Bank of New York, which carries out the central bank's open market operations, moved Thursday to inject $41 billion in temporary reserves into the financial system.--

Where to begin... Citi needs to raise 6b over the next six months, but that will not lead them to cut their dividend. Why? Because if they do, their stock price will tank, and fast. Amid record composite trading volume, Citi shares fell $2.85 to $38.51, their lowest level since May 2003 and their biggest one-day drop since September 2002, when the company was swamped with regulatory concerns.

Citi earlier this month reported a 57 percent drop in third-quarter profit, renewing speculation about the job security of Charles Prince, its chief executive.

G7 Hundred
Google has signed agreements with T-Mobile, SprintNextel (S), Verizon, and Alltel to provide ad content to new mobile devises. This expansion of its core function is asset light, and should yield high returns. People familiar with the Big G's plan say that Google is in active talks with No. 2 U.S. mobile carrier Verizon Wireless (VZ) )about putting Google applications on phones it offers. Additionally, Google only spends about 500m in capital spending, that means that everything they spend is form revenue. Plus they are investing heavy in R&D. I see the stock continuing to climb and kick mud into the face of their detractors. Good will pass $800/share before the end of the year and by Q2 next year the price will finally plateau at around $950/share. Then we can talk split.

F Bomb
On the day when the pilot of the A-Bomb dies, the market dropped is own F-Bomb. Ford Motor Co (F) posted on Thursday a 9.5 percent decline in U.S. sales for October, hurt by a drop in demand for its best-selling F-Series pickup truck.

Ford also increased Q4 sales estimated by 5,000 units, for some reason, to 645,000 vehicles. Consumer spending will remain on the decline as the housing market shocks may begin to subside, gas prices and consumer confidence will continue to decline.

In the silver lining announcement of the day, WalMart has announced that it will roll back prices early this year, ahead the typical Black Friday.


Todays Bullish Picks
1. Microsoft
2. Crocs, Inc. (CROX)
3. Exxon Mobile, Corp. (XOM_
4. US Steel (X)