In today's Daily Rundown, Jim Cramer discusses the markets, Apple (AAPL) , Broadcom (AVGO) , Wells Fargo (WFC) , American Eagle Outfitters (AEO) , and more!

JEFF MARKS: Happy Wednesday, everyone. This is the Daily Rundown, exclusive for members of Action Alerts Plus. I'm Jeff Marks standing on the floor of the New York Stock Exchange with Jim Cramer.

Jim, we got a decent rally going on in the markets today, a lot of sectors higher. We're going to get to earnings. But let's first talk about Apple. Apple is up pretty nicely again today. What do you think? What's going on here?

JIM CRAMER: Apple is all about the ecosystem, frankly, whether it be the tags that you can put on your dog if you want to, put on your kid, whether it be the service revenue, which I think is going to be completely better than what people are saying, or whether it be this new iPhone that's a 5G.

And the analysts got it wrong. They misread the demand. They're too focused on thinking the supply chain wasn't that good, there weren't a lot of orders. They got that wrong.

And look, Action Alerts has stood for many different things. But one of the chief ones is to say, when you have winning stocks like an Alphabet, when you have Apple, go back to the well constantly, Facebook. And Apple, we have been consistent in saying, hold it, don't trade it because there really was no way to catch the bottom in Apple.

I may have to talk about this in our talk next week, about how overtrading has really been not a great thing. And yet, so many people overtrade. The younger investors overtrade like mad. And I may have to castigate them. I know that no one wants to be castigated, but it's their time on the cross. And I'm going to put them there.

JEFF MARKS: Yeah. And our next Action Alerts Plus monthly call will be next Wednesday at 11:30. But just back to the Apple news, so it was reported by Bloomberg that Apple told its suppliers to increase production of the iPhone by a figure that would be 20%, a 20% increase year over year. So obviously great for Apple. But it's also the supply chain as well. And Broadcom has a big wireless business.

JIM CRAMER: I mean, Apple has the ability. If you had to pick one stock that could give you an umbrella of greatness or as I call it, pin action, from what I used to be a good bowler, it's Apple because Apple encompasses a gigantic ecosystem. And by the way, also the developers, the revenue stream, service.

I mean, obviously, think about this. India is kind of offline because of the illness. That's still to come because India is going to be one of the areas where you have the most youngest population in the world. So I come back and say, it is hard to fight this tape when Apple is your leader. This is not like being led by Nucor, as much as I wanted to have one cyclical this fund, I mean one.

It's not being led by Boeing. Boeing is a terrific leader but not as good as Apple. Boeing is not leading right now because I think it lacks management.

JEFF MARKS: All right. Let's talk about earnings. Wells Fargo did report this morning better than expected quarter on both the top and bottom lines. What really stuck out to me was that efficiency ratio down to 66%. And that's really where there's a lot of area of opportunity for Charlie Scharf to execute on his cost rationalization plan.

JIM CRAMER: I mean with Charlie, look-- Charlie, they underspent on technology. They had a board that was more concerned about appearance than they were about reality. They had a management team that obviously, the culture could not be changed overnight by Tim Sloan of what John Stumpf had given them in an era when the regulatory jackboot was there.

But they have a great install base. And they were hurt. But now Charlie's got something to shoot for. And Charlie-- we don't talk enough about CEOs who are competitive. There are some CEOs who are congenial, some CEOs who are coasting, some CEOs who feel like they should let the players play. And then there are CEOs who are so viciously competitive that they're Belichick.

Charlie Scharf is Belichick. Now, Belichick didn't have the players this year and he didn't do well. But Belichick had big cap space. And he's gonna bring them in. Charlie's got big cap space. And he's going to buy them in.

JEFF MARKS: Yeah. And just thinking about that football reference, I'm reminded of Herm Edwards, you play to win the game. And that's exactly what Charlie Scharf is trying to do.

JIM CRAMER: You play to win the game. And Charlie Scharf wants to win the game. He is a mad dog. He's a mad dog. He just hates to lose. And he sees a group of people who he thinks are fat and happy. And he's coming for them.

JEFF MARKS: All right. So in your pantheon of bank earnings right now, where would you rate Wells Fargo? Now, the conference call isn't till 11:30. So it is still a bit early. But we had JPMorgan, Goldman Sachs yesterday.

JIM CRAMER: By expectation, Goldman's the best by expectation. It's quite simply-- I know we sold it. But I will say this. Goldman is-- their earnings report turned out to be far greater than even I thought. And you know I'm a big Goldman believer.

JPMorgan did a very good job. It's just a giant money machine. It's just very hard for an A student to continue to get A's and we're supposed to be excited about it.

I like Wells because wells was a D going to a B. And it ain't going to stop at B, not with Charlie. So I think Wells is the one that, a week from now, is going to be higher. Remember, Goldman, the window's open for partners to sell right now. So be careful.

JEFF MARKS: So you want to wait a couple of days if you are interested?

JIM CRAMER: Yes. Now, I love Goldman.

JEFF MARKS: Now, we also have Morgan Stanley, they report tomorrow. That's obviously a print we're going to be very excited to see. We just bought some shares Monday at around $90. It is nicely up since then.

JIM CRAMER: I mean, look, I talk a lot in the club about the notion-- and I'm going to talk about this next week-- the notion of saying, I missed it versus it's not too late. Morgan Stanley, the stock's up, but the company's better than how much the stock's gone up.

Not only Goldman, when it was at $200, the company's better. And we went and we made 150 points. I think Morgan Stanley is much better than the stock indicates. So therefore, we want to get bigger and bigger. I actually hope Morgan Stanley comes down. It is my supreme wish that it comes down so we can double down on the position.

JEFF MARKS: All right. Let's talk about another stock that we've been buying, really, on any pullback that we've seen recently, and that's American Eagle Outfitters. And I bring it up because last night on Mad Money, one of the segments on your show, you talked about for stocks that benefit from an upcoming child tax credit and the back-to-school shopping season. That was Levi's, American Eagle, Dick's Sporting Goods, and Simon Property.

JIM CRAMER: And by the way, just so you know, I put Dick's Sporting Goods in just because the fall is going to have child tax credit. More important, there's going to be teams. So that's why I put that in.

JEFF MARKS: Intramural sports coming back.

JIM CRAMER: Yeah, intramural sports. Otherwise, that would be the one that's already up so much. American Eagle's up. Dick's doubled. American Eagle's doubling. American Eagle is-- that's not a trade. I want Dick's as a trade into the sports season. But American Eagle is going to be one that you want to own for many years. And we are going on for many years.

JEFF MARKS: And that many years, is part of that reason, we're seeing such a strong cycle right now in denim with them?

JIM CRAMER: Well, they're the best one other than Levi's.

JEFF MARKS: What's the exact number? Was it 35% of Americans had their waistline changed, something around there?

JIM CRAMER: By the way, just so you know, it's not all fatter, more fat than thin.

JEFF MARKS: Some slimmed down.

JIM CRAMER: Yes. American Eagle's stuff kind of fits you no matter what. Levi's obviously has got a very-- I mean, I like Chip. Chip Bergh has got a good thing going. I mean, when the stock was at $18, he told people, please, do not lose hope. And then it dropped again. But then it moved all the way up.

But American Eagle Outfitters, it's just been so long since people saw what could happen with a store chain like a Walmart, which starts in Bentonville and moves all over the country. A Home Depot starts in Atlanta, it moves all over the country. American Eagle is one of those stories where we are just at the beginning of the launch.

And if you looked at Home Depot and you didn't buy it or you sold it when it doubled, just think about how much you left on the table. The first double is not the real double when it comes to the great ones.

JEFF MARKS: All right, Jim. Now, we also do have Jerome Powell on the tape that he will go, he will be testifying. Anything to watch here really? You think it's going to move the market based on what he says?

JIM CRAMER: He has to be able to say it's a little hotter than expected and you don't want to panic on that. Those who have fresh powder, I would wait for if he says that and then buy.

JEFF MARKS: All right, so that will be something to watch for later this morning. And again, we also have Wells Fargo. That conference call starts at, I believe, 11:30 or so. So we'll be out with more analysis on Wells Fargo after the call today. But for that, I'm Jeff Marks. We'll see you tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, AVGO, WFC and AEO.