Video: What caused Wednesday?s market rally?

>> was a banner day on wall street . the dow soared on wednesday closing up 490 points, the largest single-day gain since march of 2009 . jim cramer is the host of cnbc's " mad money ." good to see you. good morning. let's go through the laundry list. up 490 points, closes over 12,000, the nasdaq and the s&p both up about 4%. why were investors so happy?

>> we were about three things. first around 5:00 in the morning china cut its interest rates, the equivalent of letting the banks lend more. second we come in and there is coordinated action by many of the great powers to be able to help europe . and then we're hiring, matt. we got a survey that showed real hiring.

>> when you talk about this coordinated effort by central banks to help europe , this was not a fix of the debt crisis. they didn't do anything to alleviate the crisis. what they did, and this comes from the bank of japan , the step is meant to buy time for european countries to proceed with their fiscal and economic reform . so not a fix but a good sign.

>> totally true. what happened is there were some major banks in europe that apparently were far worse off than we thought. that's why this emergency action. why? because they own a lot of this debt issued by these countries. unless we fix the debt problem with these major countries we're going right back down.

>> the other reason you talked about, the job picture here in the united states , private companies created about 100,000 more jobs than the analysts had expected in the month of november. but it makes you think, are these temporary seasonal holiday jobs? are they going to stick around after the first of the year?

>> entirely possible some of them are. look, i'm not going to look through some of this news. we definitely have more people being employed. we'll know more tomorrow when we get the payroll numbers.

>> okay. you just beat me. what is the next big indicator you want to see that is going to tell you whether this economy is moving in the right direction or is going to face more volatility?

>> two things. we got to see how many people are hired from the labor department but second we'll get another read on how christmas sales or holiday sales are. this is the most important thing of all. retail is what dominates this country. if it's as strong as it was last week, i'll tell you that our country is much better.

>> it would signal the fact that consumer confidence is on the rise if they're out there spending this holiday season .

>> that can offset how bad it is in europe .

>> all right. jim cramer , thank you very much. good to see you. a reminder you can catch jim on " mad money " week nights 6:00 and 11:00 eastern time on cnbc.

Source: http://video.today.msnbc.msn.com/today/45506349/

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