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TODAY   |  May 29, 2013

Jim Cramer: ‘We need to see some new jobs’

The stock market is at record highs, housing is the best it’s been in seven years, and consumers are feeling confident. Are happy days here again for the economy? CNBC’s Jim Cramer breaks it all down.

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This content comes from Closed Captioning that was broadcast along with this program.

>> difference a year makes. the stock market has hit record highs. the housing market , the best it's been in years. a lot of positive signs, but is the recovery in this economy for real? jim cramer is the host of cnbc's " mad money ." good morning.

>> good to see you, matt.

>> stock market closing in record territory, 20th consecutive tuesday with gains. you've got the housing market , it's robust. new home construction , housing prices up almost 11% over the same time last year, and yet you're not doing cart wheels, why?

>> well, housing is great. automobiles are pretty good, but there's not a lot of new jobs, not a lot of new small businesses being created. not a lot of commercial real estate . those are the next leg that we have to see go higher.

>> what about consumer confidence ? it recently came in, surged to a high for five years. if people are out there saying, wait a second, i feel good about this economy. i feel good about my prospects within this economy, won't that in some ways drive the economy?

>> yes. it's the second half phenomenon. you get the first where the confidence is up. confidence is up because stock prices are up. confidence is up because your house is worth more.

>> if my confidence is up i'm going to go buy things.

>> eventually. the last few months have not been that great on that score. i think the summer is going to be good, if gasoline stays low, i think the fall will be good, but we need to see some new jobs. that has to start. it hasn't happened yet.

>> you talked about the jobs. you talked about commercial construction. you talked about small business lending. i went back and looked at some of the things we've talked about over the last year. one subject we hit over and over again was europe and their economic troubles and would those spill into the united states . you don't hear much about that anymore. is that subject over?

>> yes, it's over because they are doing what ben bernanke , our fed chief, lowered interest rates, pumping money in. europe is bottoming, no longer the problem which it was which is why things are better in our country.

>> and another thing we talked over and over again the last year is the sequester and whether it would pour a lot of cold water over our recovery here. has it?

>> didn't even hurt the defense stocks, the hottest stocks there is. the stock market is terrific. housing is good and spending is going to increase. things are going to get better. it's why the market has been good, and it's why you should have hope and stay with the stock market even during a couple of down days.

>> cramer of cnbc, jim, thanks