[video] Jim Cramer Quick Take: Expect a Strong Jobs Report
The monthly jobs report is the most important economic data point, he noted. Contrary to how the market has reacted previously, good news will actually be good news rather than bad news being good news and vice versa.
He added that the markets need to see a strong labor report because of the looming government shutdown. The issues in Washington will surely shave off some of the GDP, so an improving economic picture can help offset that.
However, Cramer believes we'll get a strong nonfarm payrolls result, citing housing and autos as the catalysts. Also, should there be a drop in the unemployment rate, the market should respond favorably.
He concluded that if there is a federal government shutdown, that will put a damper on the discussion over the Federal Reserve and tapering, even if the nonfarm payrolls data is strong. Chairman Ben Bernanke specifically noted the shutdown as a reason for avoiding tapering. Cramer added that it could push the economy into a recession if the two events combined.
-- Written by Bret Kenwell in Petoskey, Mich.