As the bull market surged higher amid Republicans finalizing their tax bill, CNBC’s Jim Cramer took the temperature of the market to see if the strength could continue.
“We still don’t even know what’s finally going to happen in Washington, but as I told you last night, we’re in a ‘damn the torpedoes, full speed ahead’ moment … because of corporate earnings — witness the pin action from Costco and Adobe,” the “Mad Money” host said.
With even Congress unable to stop the averages from reaching new highs, Cramer turned to the stocks and events he’ll be watching next week.
On Monday, Cramer will be focused on European inflation data, which could alter the fate of long-term U.S. interest rates. It’s also tied to one of Cramer’s biggest market fears.
“I know it’s crazy that what they do over there really matters over here, but my biggest worry about this market is that the banks aren’t making enough money from lending. And why does that matter? Well, that could cause a slowdown in 2018 if we aren’t careful,” he said. “[It’s] the last thing we need when the Fed is tightening. That’s how you get a recession, for heaven’s sake. So we’re in this nutty position of wanting more inflation in Europe if we want to eliminate a major risk to the market’s continued move higher.”