CNBC's Jim Cramer said Thursday that investors need weaker numbers than Friday's labor report if they want stocks to rise, adding that what's really driving the market is the inflation report.
“At this point in the economic cycle, we often have 'bad news is good news' moments, but it's rarely been as far-fetched as it has been recently,” he said. “I wish the market didn't work this way, but it is what it is. This is why if you expect stock prices to rise, you need to bet on the U.S. economy tomorrow.”
Cramer lamented Wall Street's obsession with the Federal Reserve's next decision on interest rates. Investors are hoping for a rate cut, but the Fed says inflation is too high and the economy is still too strong to do so.
Cramer doesn't want to be against the economy, but investors are signaling to the Fed that information such as the April jobs report will drive market movements, even in an influential earnings week. He said that he is focusing on the “big picture”.
This dynamic frustrates Kramer because it makes companies feel like they have no control over their own destiny. He also said the focus on the federal funds rate has made the stock market a “plaything” for people who want to bet on the Fed's next move.
“Everyone knows that every point earned today can be wiped out by a mistake in tomorrow's employment report. Right now, being wrong means being stronger than expected,” Kramer said. he said. “That's ridiculous. It's the opposite of the stock-picking market.”