On the announcement of the Government takeover of Freddie Mac and Fannie Mae, the markets surged on the open. The S&P 500 initially jumped over 30 points, more than it has ever moved on an open.
The U of Michigan Consumer Sentiment Index of 62.6 is at its lowest level since March 1982 when it hit 62.0. The news is weighing on stocks.
Defaults on privately insured U.S. mortgages rose 38.1 percent in February, as a growing number of homeowners failed to keep up with their loan payments.
Cramer makes the call on viewers' favorite stocks.
Genworth Financial, a life and mortgage insurer, on Tuesday forecast 2008 operating earnings below analysts' expectations, sending its shares down 5 percent.
Excluding items, Genworth earned 75 cents a share, short of expectations. The company was seen reporting earnings of 77 cents a share, based on a consensus estimate compiled by Thomson Financial.