U.S. stocks rallied nearly 3 percent on Tuesday as Wall Street got some help from Europe: A report showed German business optimism rising unexpectedly and as Spanish short-term financing costs fell sharply. European markets also posted solid gains at the close.
Yields on three and six-month Spanish treasury bills fell sharply and demand surged in an auction on Tuesday, with analysts saying, according to Reuters, that banks were waiting to tap into an ECB three-year liquidity offer on Wednesday to pay for the higher-yielding Spanish bonds.
But it wasn’t news out of Europe that caused stocks to rally, so much as it was a lack of news out of Europe. To Cramer, this was a "Roman Holiday," where investors were able to recognize good things happening the U.S. and feel confident about investing. So the gains were largely thanks to data that showed housing starts and building permits both rose sharply in November. The data reinforced recent numbers showing gains in builder sentiment and increases in sale prices. This only got attention, though, because Europe wasn’t melting down.
Meanwhile, truck maker Navistar reported strong quarterly earnings results on Tuesday, indicating that the truck market is doing well. There is a truck shortage because of the aging fleet and also due to the increased demand to drill for oil, which needs to be trucked to the railhead or pipeline or refinery. The markets finally noticed this Tuesday, but only because it wasn’t distracted by Europe.
“This has to make you wonder, what happens if Europe goes on holiday until New Years? Who knows how high we could go?” Cramer said, adding there’s just one problem. “I haven’t seen any sustained period of more than a few days when someone doesn’t do something stupid over in Europe that hurts confidence and dings their economies.
“I say ferme la bouche! Let us run for a couple of days, Europe. I promise to throw three euros in a fountain if you do.”
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