Oracle Lays an Egg: DEFCON 2 Remains in Effect

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NEW YORK (RealMoney) -- Yes, in the short term, it is good Europe's got something going to keep a Lehman-type scenario from happening, because it allows us to focus on the U.S. But then Oracle(ORCL) comes in and lowers the boom, trashing everyone in the cloud-computing, consulting, hardware and telecom-equipment businesses in a quarter from hell -- and the U.S. gets hammered. Ironic. Now, a couple words about Europe: They're all about trying to start something that keeps their banks from failing and allows them to build capital, while allowing them not to sell assets. That's very good for Europe. Of course, they are doing it by introducing more debt, and not less. As we've learned from the U.S. crisis, only equity ultimately restores confidence -- equity raised in the capital markets. >>Cramer: Trading Commodities in Deflation Panic The U.S. did engage in a similar plan in the early 1990s, to liquefy the banks. However, the economy also saw tremendous growth coming, along with a dramatic decline in interest rates and oil. Some good needs to happen away from the banks, and we're not seeing that in Europe. In fact, it's the opposite. The economy there is awful, and that means more pressure on U.S. companies that are linked to Europe -- the tech and banking sectors. We don't know how much of Oracle's gigunda miss really came from Europe, as the company said business there was weak. To me, though, what's most monumental here is that Europe had been very strong for them last quarter. >>Learn about this premium service that hands investors investment strategies from veteran Wall Street pros. Understand what we need to see happen in order for this market to go higher: Europe must get off the front pages, and the euro must stabilize. Only then can we see good numbers here. Europe is off the front pages, but now Oracle has laid an egg. So, as always, we default back to the drug makers, the food names and the high-yielders. You just can't get complacent. DEFCON 2 remains in effect. At the time of publication, Cramer was long ORCL.>To order reprints of this article, click here: Reprints Add Comment Tweet adsonar_placementId=1341527;adsonar_pid=879768;adsonar_ps=-1;adsonar_zw=600;adsonar_zh=280;adsonar_jv='ads.adsonar.com'; try { function DM_onSegsAvailable(segs, cust_id) { for (var i=0;i //* Global Functions *// function metadataRegisterNS(ns){ var nsParts = ns.split("."); var root = window; for(var i=0; i Dow Jones S&P 500 NASDAQ 10-Year Note 12,057.11 1,238.56 2,557.90 19.70 Oil * 107.83 DOWN 46.47 DOWN 2.74 DOWN 45.83 UP 0.45 10 Yr 1.97% SPDR Gold 156.92 -0.38% -0.22% -1.76% +2.34% Data delayed 20 minutes Top Stories and Tools var randnum = Math.floor(Math.random() * 100) if (randnum < 50) { document.write("10 Things Still Made in America"); document.write("Dividend Calendar: Find Ex-Dividend Dates"); document.write("Goldman Sachs' 9 Best Stocks for 2012"); document.write("Merrill Lynch's 10 Favorite Stocks for 2012"); document.write("Today's Top-Rated Stocks (by Industry)"); document.write("FREE NEWSLETTER: Dividend & Income Investor"); } else { document.write("10 2011 Cars You Should Buy Now"); document.write("17 Products That Were Invented by Accident"); document.write("9 Completely Worthless Collectibles"); document.write("2011 Bank Ratings and Safety Screener"); document.write("10 Hottest Holiday Gadgets of 2011"); document.write("10 Best Dow Dividend Stocks for 2012"); } Twitter Facebook RSS Mobile App TSCM.ads.AdPlacerx.sz = "336x280,336x850,300x250,468x648"; TSCM.ads.AdPlacerx.resetTargets(); TSCM.ads.AdPlacerx.calltype = "adj"; TSCM.ads.AdPlacerx.additionalTargeting = ";;storytype=premiumpreview;kval=premiumpreview;;storytype=premiumpreview;kval=premiumpreview"; TSCM.ads.AdPlacerx.writeTag(); adsonar_placementId=1341369;adsonar_pid=879768;adsonar_ps=-1;adsonar_zw=320;adsonar_zh=280;adsonar_jv='ads.adsonar.com'; Brokerage Partners Free Newsletters from TheStreet

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