What will Jim Cramer be watching next week? "The Fed," of course, he said Friday from the floor of the New York Stock Exchange.

Cramer, the co-manager of the Action Alerts PLUS portfolio, wants to see how the Federal Reserve will react to the May nonfarm-payrolls data next Friday.

Based on what the Fed has been saying in recent weeks, it's becoming more and more clear it's looking to raise interest rates. If that is the case, Cramer said, we might as well hope for a strong labor report next week.

In the past, a weak or even decent labor report has kept the Fed on hold on raising rates. But if it's going to hike in the not-too-distant future, it's better to have strong employment than weak employment, he said.

Cramer noted recent comments from Toll Brothers (TOL) - Get Report Executive Chairman Bob Toll, who supports a rise in interest rates. "When a homebuilder says it's time, it's time," Cramer reasoned.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.