Unemployment claims day. And again, they came higher than expected.
The Department of Labor on Thursday reported that 885,000 Americans submitted their first unemployment benefits in the week ending Dec. 12, up from 862,000 a week earlier, the highest amount since early September. Economists interviewed by FactSet expected 800,000 claims.
The Department of Labor said ongoing claims, which not only provide unemployment benefits but remain on unemployment benefits, amounted to 5.508 million in the week ended December 5, up from 5.781 million as adjusted the previous week.
Cramer said markets are likely to continue to ignore the derogatory title. “They won’t notice it because these people are delighted, they don’t have a voice … Congress didn’t care about these people,” Cramer said.
While Cramer said he really thinks Congress cares about the unemployed to some degree, he says Capitol Hill has turned his attention in the wrong direction.
“Their hearts tend to destroy the other party because the other party is considered a devil, both parties,” Cramer said. “It’s almost like Dickens wrote this story, except that in the end Scrooge isn’t a convert. He doesn’t see the spirit of the Christmas future and just lets Bob Cratch die of starvation.”
In the video below, Jim Cramer talks about the Fed, stimuli, jobless claims, Robinhood, Domino (DPZ) – Download report and more:
And we heard from the Federal Reserve yesterday.
“The Federal Reserve will continue to increase its treasury securities portfolio by at least $ 80 billion a month and agency mortgage-backed securities by at least $ 40 billion a month until significant further progress is made toward the committee’s maximum employment and price stability targets,” the Fed said in a statement on Wednesday.
At its last meeting in 2020, the central bank also maintained stable interest rates in the target range of 0 to 0.25%.
Cramer said the Fed flooded the markets with further euphoria as the promise of unlimited support for the economy could lead to overly enthusiastic stock purchases.
“It encourages the level of speculation. We don’t do that,” Cramer warned.
Wondering what Jim Cramer and his team at Action Alerts PLUS are looking at in the markets? Watch Cramer’s exclusive member-only Daily Rundown on Action Alerts PLUS on TheStreet Live.
Daniel Kuhn reported on this article.