CNBC Investing Club with Jim Cramer hosts a “Morning Meeting” livestream each weekday at 10:20 AM ET. Let’s know about the important moments of Tuesday. Stick With Wells Fargo Initiating CAT, SBUX Sell Buy Emerson Electric 1. Stick With Wells Fargo Jefferies and Piper Sandler on Tuesday downgraded Wells Fargo (WFC) to Hold, citing concerns over the bank’s lower-than-expected forecast . net interest income in 2023. Wells Fargo reported fourth quarter results on Friday. However, we disagree with the downgrades because they don’t account for the fact that Wells Fargo is close to putting its regulatory issues behind it, which will result in meaningful cost reductions. In addition, management said on Friday that the bank plans to resume share buybacks this quarter after repurchasing $10 billion worth of stock in 2022, reinforcing our confidence in WFC. 2. CAT debut, SBUX sale We bought 55 shares in industrial giant Caterpillar (CAT) on Tuesday at $257.86 per share. Our purchase of Cat, which makes construction and mining equipment, is in line with our enthusiasm for industrial stocks, which should see tailwinds from several federal funding programs this year. At the same time, we sold 50 shares of Starbucks (SBUX) at approximately $106.87 per share. The coffee maker’s stock is up 26% since we first initiated a position in August, helped by China’s economic reopening. 3. Buy Emerson Electric Shares of Emerson Electric (EMR) were trading down nearly 4.8% to $91.52 per share in early morning trading on Tuesday after the company launched a $7.6 billion hostile takeover bid for National Instruments (NATI). It was If the deal goes through, it would be in line with Emerson’s strategy to invest in higher-margin automation opportunities. This is a good opportunity to buy on declines in Emerson’s shares. (Jim Cramer’s charitable trust is long CAT, EMR, SBUX, WFC. See here for a full list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive trade alerts before Jim trades . Jim waits 45 minutes to send a trade alert before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our terms and conditions and privacy policy, along with our disclaimer. No fiduciary obligation or duty exists, or is created, by virtue of your receipt of any information provided in connection with Investment Club. No specific results or benefits are guaranteed.