Stocks rallied Thursday as investors believe Democratic control of both houses of Congress will lead to further fiscal stimulus and infrastructure spending.
TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about Facebook’s decision to block President Trump, hopes of an economic recovery and markets a day after a pro-Trump mob stormed the U.S. Capitol Hill.
Facebook: Buy Or Sell?
Shares of Facebook (FB) – Get Report rose after the social media platform said it would block President Trump from posting for at least the remainder of his term because the risks of allowing Trump to continue to use Facebook and Instagram were ‘simply too great.’
Cramer said that this was a good move by Facebook. “I have been urging Facebook to do this. I have been trying to get Facebook to understand the power it has and it is good to see that they are without a doubt much more attuned and have a more social conscience than they used to.”
The number of Americans filing first-time claims for jobless benefits dipped last week while staying extremely high, Reuters reported. Layoffs announced by U.S. companies surged 18.9% in December, other data on Thursday showed.
Cramer said he expects infrastructure stocks to rise and hopes to see a green revolution that will put a huge number of people to work now that there is a Democratic majority in the U.S. Senate.
“We need an emphasis on electronic vehicles, to get away from fossil fuels, that will create a lot of jobs. We need to see money in people’s pockets until the pandemic is over. We need to see broader testing, more social distancing and of course the vaccine. If President-elect Biden does one thing and that is to target getting 330 million people vaccinated within the next 30 days that will cause the stock market to explode. That’s the intersection between government and stocks.”
Markets After Capitol Hill Riots
All three stock indices were higher Thursday as the Dow Jones Industrial Average rose 223.26 points, or 0.72%, to 31,056, the S&P 500 gained 1.42% and the Nasdaq jumped 2.34%.
Cramer said we need sellers for the market to go down. “We need people to say I don’t think the stock market is any good versus investors buying treasuries because people are rioting in Washington knowing that they may not be rioting today. And the answer is no. You have progress going for you and stimulus going for you and so under that scenario, you’re not likely to sell stocks. If you see what’s going on at Capitol Hill and you decide to sell stocks on that then you’re not reacting correctly to why stocks go up and down.”