The hit another five-year high on Thursday, even as Apple ended near session lows and investors remain concerned about Washington gridlock, tax increases and a sluggish economy, host Jim Cramer noted on CNBC's "Mad Money."
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"While you might not think the overall economy is getting better, you're missing the big picture," Cramer said.
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Take unemployment, for example. Weekly jobless claims fell 5,000 to a seasonally adjusted 330,000, dropping to its lowest level in nearly five years, according to the Labor Department . Analysts polled by Reuters had expected claims to rise to 355,000 last week.
"There's absolutely no coincidence that we hit five-year highs today at the same time that unemployment claims hit a five year low," Cramer remarked, adding improved jobs data doesn't seem to be the only tailwind for the stock market, though.
Stocks are pushing higher because of the certainty following the presidential election and resolution to the "fiscal cliff" — the series of legislation that ca100404660lled for automatic tax increases and budget cuts on January 1, Cramer said. The markets are also being helped by improved economic data in China and Europe, as well, he added.
"All of that good news and the jobs it creates are causing a radical revision in what we're willing to pay for future earnings," Cramer said. "That's right, the price to earnings multiple — the ratio of how much we'll pay for the profits companies are going to have down the road — is headed north and therefore, so are stock prices."
In turn, investors who had long stayed out of the stock market are buying stocks again, Cramer said. This is a "robust bull market" that will soon take share prices to levels "where they belong."
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—CNBC.com and Reuters contributed to this report