Jim Cramer says the market needs a solid earnings season after Thursday’s hotter-than-expected inflation numbers

CNBC’s Jim Cramer bemoaned Thursday’s hotter-than-expected inflation figures for December, saying the data was a blow to bulls hoping for interest rate cuts from the Federal Reserve. He said the market needs a solid start to earnings season on Friday to improve the averages.

“The bulls didn’t get the cool inflation number they wanted. Consider that strike one of a two-strike game,” he said. “Tomorrow’s earnings bring another pitch. If we get another swing and a miss, I don’t think the averages will be able to rebound like they did this afternoon.”

The consumer price index increased 0.3% in December from the month before, higher than most economists estimated, which suggests the U.S. doesn’t yet have a handle on inflation. Following the news, the Nasdaq Composite closed flat, the Dow Jones Industrial Average gained 0.04% and the S&P 500 edged down 0.07%.

On Friday, earnings season kicks off with reports from big banks JPMorgan, Citigroup, Bank of America and Wells Fargo. These results could set the tone for earnings season, Cramer said.

Although Thursday brought some positive commentary on gains for the “Magnificent Seven” and their Big Tech peers, Cramer had hoped for broader market success. He said the session saw “more stocks decline than increase” which is “less healthy” than typical action the market’s seen since October.

“Tomorrow we’re getting report cards from the major banks, and if they aren’t special, if they don’t wow us, I think we’ll be 0-for-2,” Cramer said. “And that could crack the exterior of what’s been a pretty darned good year so far.”