Why the Arm IPO is good news for these bank stocks

Published Thu, Sep 14 202311:10 AM 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 Thursday's key moments. Equities rise Watch MS, WFC Stick with Amazon 1. Equities rise Stocks climbed higher Thursday morning, with banks and energy stocks leading the way. The S & P 500 and the Nasdaq Composite both gained roughly 0.5% in midmorning trading. The moves come on the heels of fresh economic data Thursday, with U.S. retail sales for August coming in stronger than expected, even as wholesale inflation advanced more than predicted last month. Government bond yields were largely unchanged, with that of the 10-year Treasury hovering below 4.3%. Oil prices continued their march north, with West Texas Intermediate crude breaching $90 a barrel for the first time in 10 months . 2. Watch Morgan Stanley, Wells Fargo Shares of Club bank holdings Morgan Stanley (MS) and Wells Fargo (WFC) jumped Thursday along with the broader financial sector, likely bolstered by Arm Holdings' highly anticipated initial public offering . The British chip designer, owned by SoftBank Group (SFTBF), set its offer price at $51 a share and begins trading on the Nasdaq Thursday. The event is the biggest IPO of the year so far, and if it reignites the dormant market for public offerings it could have bullish implications for big banks. Morgan Stanley stock was up 1.63%, at $88.68 a share. Wells Fargo stock was up more than 2%, at just over $43 a share. 3. Stick with Amazon Morgan Stanley on Wednesday named Club name Amazon (AMZN) a "top pick," citing improving North American retail profitability that can drive 2025 margins back to 2019 levels and earnings-per-share to $5 or higher. "This is a note which is basically saying that management has figured out how to make a lot of money again...on retail," Jim Cramer said Thursday. Shares of Amazon are trading at at 52-week high, hovering around $145 apiece. The stock has gained more than 70% this year. (Jim Cramer's Charitable Trust is long MS, WFC, AMZN. 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.