Cramer calls Wells Fargo the 'best-capitalized bank' following $1 billion settlement

Published Tue, May 16 202312:16 PM EDT

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Tuesday's key moments. Equities mixed Wells Fargo settlement Watch AMD 1. Equities mixed Stocks were mixed Tuesday morning, with the S & P 500 down 0.3% and the Nasdaq Composite up 0.15%. The lack of direction comes as the Commerce Department released fresh data showing retail sales rose by a slower rate than expected in April and as home improvement retail giant Home Depot (HD) cut its full-year guidance, sending shares tumbling by more than 3%. Meanwhile, Club retail holding TJX Companies (TJX) reports first-quarter results Wednesday before the opening bell. Despite the fragile economic climate, the off-price retailer remains well-positioned given the value it offers consumers. 2. Wells Fargo settlement Club holding Wells Fargo (WFC) agreed to pay shareholders $1 billion to settle a class-action lawsuit that accused the bank of overstating its progress in resolving its fake accounts scandal of 2016. We aren't concerned, however, because the bank has been setting aside billions of dollars to resolve litigation and regulatory matters. Jim Cramer on Tuesday called Wells Fargo "the best-capitalized bank." The Club holding has also been a beneficiary of deposit withdrawals from regional banks in the wake of the collapse of lenders like Silicon Valley Bank. Shares of Wells Fargo were down around 0.35% Tuesday, at $38.64 apiece. 3. Watch AMD Chipmaker Advanced Micro Devices (AMD) is one of the top-performing stocks in the market Tuesday, with the stock up more than 5%, at $102.38 a share. The move comes as Bernstein released a note saying the correction in the PC market is improving, with shipments starting to normalize to pre-Covid levels. We're tempted to sell AMD on strength, but expect the Club holding to continue to see growth based on its artificial intelligence capabilities. Meanwhile, Club tech stocks Amazon (AMZN) and Alphabet (GOOGL) also climbed in Tuesday trading. (Jim Cramer's Charitable Trust is long TJX, AMD, WFC, AMZN, GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.