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Cramer Remix: Wells Fargo could be a top beneficiary of a rate hike

Cramer Remix: Wells Fargo could be a top beneficiary of a rate hike

The inconsistency in the stock market is maddening for Jim Cramer right now, and it is everywhere. Stocks have huge runs, only to be repealed, and the experts moving the stock all have different opinions.

"It is the kind of thing that inspires zero confidence, and that lack of confidence is what keeps so many investors either on the sidelines or streaming from the exits well before the game ends," the "Mad Money" host said.

Cramer saw the inconsistency play out with Wells Fargo on Tuesday. Wells Fargo CEO John Stumpf was questioned on Capitol Hill for the company's cross-selling tactics that resulted in thousands of unauthorized client accounts being opened.

"It was a weird hearing because anger at Stumpf actually brought together both Democrats and Republicans in condemnation. Stumpf united the aisles, against, well Stumpf," Cramer said.

Yet, the stock wasn't hammered in response. Instead, Wells Fargo stock had its best day in ages and rose almost 2 percent. Cramer explained the dissonance and pinned it to short-sellers. It was time for them to bring in their bets because of the possibility that the Fed could spring a surprise rate hike at Wednesday's meeting.

"Whatever the publicity and fallout might be, Wells Fargo's stock is expected to be one of the top beneficiaries of a rate hike, which, of course, trumps everything else," Cramer said.

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With the Federal Reserve meeting on the horizon, Cramer wants investors to be searching for stocks that could be bought regardless of what happens with interest rates.

"We know that the banks have been hammered … However, the non-bank financials, especially the payment plays, have been holding up pretty nicely," the "Mad Money" host said.

To gain further insight on the credit card and payment plays, Cramer turned to Bob Lang, founder of and a colleague of Cramer's at TheStreet.

Lang took a look at the charts of Visa, Mastercard and PayPal, and found that the charts are looking up for all three. Many fund managers like to mirror the composition of the and want to have financial exposure, without buying the banks. Hence, they turn to non-bank financials like credit cards and payment processors because they don't need higher rates to make money.

"While PayPal is my favorite, I like all three and I would buy any one of these into weakness if the Fed gives us a statement that is too hawkish tomorrow," Cramer said.

Cramer was amazed when he saw that Morgan Stanley upgraded General Motors on Monday after its analyst, Adam Jones, had hated it for ages.

"It was certainly a begrudging upgrade, but the thesis behind it was brilliant in its simplicity," Cramer said.

In short, if General Motors can report flat earnings for a few years, it will be a big win for the company. The average stock in the S&P sells for 18 times earnings, but General Motors sells for just six times earnings because it is expected to have a few down years in a row. Money managers won't pay up for companies with declining numbers.

Thus, GM has the same problem as Ford and the three big airlines: Delta, American and United Continental. Analysts think the future will be much worse than the present. However, the companies don't agree. They are all concerned with the near-term but bullish about long-term prospects, regardless of how skeptical analysts are.

Ultimately, Cramer believed that Morgan Stanley will be right on General Motors, and that is why he called airlines a buy at current levels, not a sell.

Etsy took another step in its transformation when it announced the acquisition of Blackbird Technology for an undisclosed amount. Blackbird is a privately-held machine-learning company that delivers search relevance and recommendations.

Etsy is an online marketplace for handmade goods. It plans to use the artificial intelligence platform to direct customers to products they would likely buy, and enhance search functionality.

"We already have deep skills machine learning, because it's really hard to connect 40 million items to 26 million buyers around the globe," Etsy CFO Kristina Salen told Cramer on Tuesday, "But this augments our skill set and actually accelerates our progress in search, and we think it is going to drive future growth."

Technology wholesaler Tech Data also had acquisition news when it announced that it purchased Avnet's Technology Solutions business for $2.6 billion. Tech Data's stock shot up more than 20 percent following the news.

Cramer found a lot to like with the transaction, as it will provide Tech Data with more exposure to the data center and expand into the Asia-Pacific market. He spoke with Tech Data's CEO Bob Dutkowsky, who explained the importance of preparing customers for the third platform, which will drive all strategic investments for company over the next decade.

"I think the market and the customers and vendors understand exactly how the two pieces fit together. Tech Data wants to invest in the data center and help our customers grow at the higher-end of the market. The reason that is important is we want to help our customers get ready for the third platform," Dutkowsky said.

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

Cummins Inc: "I would actually buy Cummins for the long term. I think that China is going to be fine, and it is a bit of a China play."

Micron Technology: "I think Micron is terrific. Remember, I like Intel. I like Micron, boy I'll tell you I still love NVIDIA even though it just moved up again today.