There are “a lot of reasons to go down,” Cramer said. “I really expected us to be down more than we are.”
Also weighing on the mind of investors, is what exactly the Federal Reserve will do next. But if it turns out Chairman Ben Bernanke buys just a few hundred billions dollars in bonds over several months, which is what The Wall Street Journal reportedon Wednesday, and we see the Republicans capture the House as expected, then the market will “go up more,” Cramer said, “if we continue to get these kinds of [good] earnings [reports].”
In other stock news, Cramer recommended Owens Corning , saying it should be bought once we see a good unemployment number. And he defended Panera Bread , which has been punished for lacking store growth on par with Chipotle. But that’s only because Panera already operates on a large store base, so it needs other ways to move the growth needle. That said, PNRA has delivered consistent returns for investors, and Cramer called it a “fabulous stock.”
Lastly, Cramer said that if the Treasury Department is right and there is no systemic risk to banks being forced to buy back certain mortgage securities, then Bank of America will find a bottom. And he thinks the threat that the Federal Reserve Bank of New York, BlackRock and other large institutional investors could sue BofA will generate more lawyers’ fees than charges for the bank.
When this story published, Cramer's charitable trust owned Bank of America.
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