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Jim Cramer Says Market Faces 'A Christmas Carol' With Capitol Hill's Heart Misplaced

In Thursday's stock market breakdown, Jim Cramer talk jobless claims, stimulus, Domino's and more.

It's jobless claims day. And they came in higher than expected again.

The Labor Department reported Thursday that 885,000 Americans filed for first-time jobless benefits in the week ended Dec. 12, up from a revised 862,000 claims the week earlier and the highest since early September. Economists polled by FactSet had been expecting claims of 800,000.

Continuing claims, which are the number of people not just filing but staying on unemployment benefits, came in at 5.508 million for the week ended Dec. 5, down from an upwardly revised 5.781 million the previous week, the Labor Department said.

Cramer said the markets will likely continue ignoring the disparaging headline. "They'll ignore it because these are people that are dispossessed, they don't have a voice...Congress didn't care about these people," Cramer said. 

While Cramer said he does believe that Congress cares about the jobless at some level, he said Capitol Hill has focused its attention in the wrong direction. 

"Their hearts are bent on destroying the other party because the other party is regarded as the devil, both sides," Cramer said. "It's almost as if Dickens wrote this story, except in the end Scrooge isn't a convert. He doesn't see the ghost of Christmas future and just lets Bob Cratchit starve."

In the video below, Jim Cramer talks the Fed, stimulus, jobless claims and more: 

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And we heard from the Federal Reserve yesterday. 

“The Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the committee’s maximum employment and price stability goals,” the Fed said in a statement Wednesday.

The central bank, at its last meeting of 2020, also held interest rates steady in a target range of 0% to 0.25%.

Cramer said the Fed inundated markets with further euphoria as the promise of unfettered support for the economy can lead to over-enthusiastic stock buying. 

"That does encourage a level of speculation. That's not what we do," Cramer warned. 

Curious about what Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer's exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.

Daniel Kuhn contributed reporting to this article. 

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