JEFF MARKS: Happy Tuesday, everyone. I'm Jeff Marks. This is The Daily Rundown show, exclusive for members of Action Alerts Plus. Jim, we got market setting record highs today.
JIM CRAMER: A lot of our stocks.
JEFF MARKS: A lot of categories are up. Yeah, a lot of our stocks are moving higher.
JIM CRAMER: I mean, you know, we have the Wells, which is up pretty good. We've got some of these semis are just on fire again. Now, I can't blame it. Nvidia's down. I mean, that stock was up--
JEFF MARKS: 5% yesterday.
JIM CRAMER: Nvidia's been the best performer. And I'm very proud that we had Nvidia. And we stuck with it. And we stuck with it because we believe in Jensen Huang. And because we believe in the Arm Holdings deal. And that remains one of my absolute favorite stocks. And if it pulls back, you buy it.
JEFF MARKS: All right, that's one to watch there, especially on a pullback. Now, you mentioned Wells Fargo. Big news after the bell yesterday. They doubled the dividend, announced a buyback that's supposed to be $18 billion over the next four quarters.
JIM CRAMER: We were hoping a little more. But look, Charlie Scharf is not going to show his hand. I mean, Charlie is a guy who was at JPMorgan. He was at Visa. And then Bank of New York.
I think that Charlie's reinventing the whole culture. I think that the proof will be in the earnings, not the buyback. They have missed, missed, missed, missed. They have missed so many times.
That is not Charlie's way. Soon we will have Charlie's bank. And that will be a bank you want to own for earnings. And that's what should matter.
JEFF MARKS: Yeah, and then just to circle back on those capital returns, we were talking about this right before we taped. Morgan Stanley, they put out a piece this morning. They said that they think Wells Fargo's $18 billion repurchase, that could be the floor, and that they actually think there is the potential for being $23 billion this year.
So we'll put out a note later just to kind of explain why they think that. But look, they have the capacity to return the capital.
JIM CRAMER: Right, and that means, just so you know, there'll be in there buying. And then we'll get the earnings. Then they're going to walk away for a little bit. But what matters to me is they're sopping up stock. So it's entirely possible that this is the denominator getting smaller, leaving more earnings for the shareholders.
JEFF MARKS: And also, they've been kind of hampered by that asset cap. But once that's lifted, that's a catalyst that no other bank stock has right now.
JIM CRAMER: No, I mean, Wells was a bad actor, OK? They were a bad actor with a-- I actually thought that Tim Sloan was doing a decent job. But the Feds obviously said, listen, we don't want anybody there who's been there, including the board. The board has had a total turnover.
Now, the underinvestment that the company had made is killing the company, OK? So they got to finish the investment. And then they've got to figure out who they are. And Charlie's trying to do that right now.
JEFF MARKS: All right, let's hit Facebook next. Newest member of the trillion dollar market cap companies. The FTC, they had a complaint that was dismissed by a federal judge yesterday.
JIM CRAMER: Remember, that was a Trump FTC, very unsophisticated. Not a silly brief, but one that was so out of touch with the current state of antitrust that it was almost as if they had to go back to law school. This ruling was basically, please go back to law school.
JEFF MARKS: Yeah, what I thought that always confused me about it is that they wanted to essentially force Facebook to divest Instagram and WhatsApp. And these were acquisitions that the FTC cleared.
JIM CRAMER: Oh, my god.
JEFF MARKS: So they wanted to go back on what they previously approved.
JIM CRAMER: One of the things that I thought the judge left-- I loved it when he said, kids call it Insta. One of the things that was left out was that at the time everyone laughed at Zuckerberg for paying so much for Instagram, and then paying so much for WhatsApp.
He paid too much at the time. And the FTC blessed it. So now suddenly it looks like he stole them. And no one remembers that the FTC blessed it. And that's nonsense.
But the 32-year-old director of the FTC is going to go after him again. But if you read the ruling closely, you know that there's really not a lot of daylight. It's about personal social network, and the size of it, and whether they have restricted you. And the answer is no.
So there's no remedy. They didn't talk about, listen, and yeah, if we break them up it'll be better for the consumer. Break them up, it'll be worse for the consumer. And the ruling is about being better or worse for the consumer.
JEFF MARKS: Yeah, you bring up a great point. New FTC member. And I think something that a lot of club members that they could really help better understand is that even if the FTC did force a breakup of Alphabet, Amazon, Facebook, this would actually be a positive for shareholders, because the sum of the different parts-- let's take Alphabet, for example--
JIM CRAMER: Alphabet would be much better broken up.
JEFF MARKS: YouTube, Google, their cloud business, it's actually worth more than the valuation of the whole.
JIM CRAMER: Yeah, and they've got this health care business that nobody cares about that could be worth a lot of money.
JEFF MARKS: Verily.
JIM CRAMER: Yeah, YouTube doesn't really belong under this. I mean, Waymo, I mean, a self-driving car. I mean, Cathie Wood would be a sucker for that one. She'd sit there and buy it every day until the cows came home.
JEFF MARKS: So Alphabet would move from one of her cash equivalents to something that she would target more because of Waymo.
JIM CRAMER: She's in a class of her own.
JEFF MARKS: All right, let's move on. Talking about cars, UBS Evidence Lab out with a piece today. They said that based off their survey, a lot more people are interested in buying a battery electric vehicle than before. It's up 6% compared to what their previous survey was last year.
JIM CRAMER: Remember, though, people are talking about Ford and GM now as being battery, not just Tesla. And Tesla, we got some numbers-- we actually got a price target cut.
I happen to think that Ford, which we own, that Ford should be bought. It's had a pull back by the way, from $15.40 down to $14 and change. I think people have to recognize that the Maverick is here. That the Mustang has got some great stats behind it. And the F-150 electrification is here. And the Bronco, which is very hard to get. A lot of people feel it's sold out.
These particular vehicles-- I'm not going to call them cars-- are a big margin, even with the chip shortage. So I think you should be in Ford. I think Ford takes out its 2011 high of $18. I think it's really there. Farley's really good. The chip shortage is ending.
We're going to hear that maybe tomorrow with Micron. Get in Ford first, before Micron talks tomorrow.
JEFF MARKS: All right, so that's definitely something to pay attention to. And that Micron call is going to be a big one as well.
All right, Jim, before we wrap today, we ha a buy this morning. We put out a position on Wynn. It has been a bit of a disappointment. A lot of it has to do, a big sell off yesterday. Delta variant really ravaging through a lot of these hospitality stocks, travel stocks.
JIM CRAMER: Yeah, I mean, Marriott was down big. But you have to be in the-- look, the delta variant is bad, there's no doubt about it. But sometimes you have to buy stocks into that in the same way that you had to believe that American commerce would open.
Look at United Airlines. They're buying for the future. They're saying, we're going to be open. They have a lot of capital they're putting to work. So I'm not as scared about the variant.
I do always worry about China versus the US. But I think that this is going into football season and Macao. You want to buy it. And we'll keep buying on the way down.
JEFF MARKS: Yeah, so I think that's exactly the way you should look at it. That's it for today. I'm Jeff Marks. We'll see you tomorrow.