Wall Street issues a bullish call on big banks. Here's what it says about our financial stocks

Published Tue, Jan 30 202411:54 AM EST

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. 1. U.S. stocks were mixed Tuesday as investors prepared for Big Tech earnings. On deck after the bell are Club names Microsoft and Alphabet . Jim Cramer said investors should watch what Microsoft has to say about the monetization of its generative artificial intelligence offerings. Starbucks , another portfolio name, is also set to release earnings late Tuesday. We expect a shortfall. Looking at the broader market, Jim said investors should watch out for the Fed's interest rate announcement Wednesday afternoon. "This is a classic day where people are trying to figure out if the Fed is going to screw everybody," Jim added. 2. Danaher stock was up over 3% in late morning trading, reversing a decline of about that much in the premarket. Management shared a brighter outlook for revenue and said underlying demand for biologic medicines should strengthen. "This is an actual resurrection" for Danaher, Jim said, adding that when the Fed starts cutting rates, spending in the biotech sector should improve. Still, we're watching out for any destocking headwinds that may impact the company moving forward. Watch your email and texts for our full Danaher quarterly earnings analysis later in the afternoon. 3. Wall Street issued a bullish call around the major U.S. banks. Morgan Stanley analysts said that Basel Endgame — forthcoming regulations that require banks to hold more capital — is less of a concern than when initially proposed. "This opens the door for a significant increase in buybacks, as large-cap banks have the highest excess capital levels ever," the analysts argued in a new research note. Morgan Stanley analysts increased their Wells Fargo price target as a result. The analysts also mentioned an improved backdrop for capital markets. While they can't cover themselves, a rebound in IPOs and M & A would likely boost Morgan Stanley's crucial investment banking segment. (Jim Cramer's Charitable Trust is long WFC, MS, DHR, MSFT, GOOGL, SBUX. 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.