Squawk on the Street

Cramer's Morning Take: Costco 5/9/24

Cramer calls this grocery stock ‘consistent’ after its monthly sales report. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Duration:: 5m
Broadcast on:: 09 May 2024
Audio Format:: mp3

CNBC Investing Club Disclaimer

electricity a big idea that's inspired countless new ones from powering the light bulb to virtually powering our entire lives 30 years ago State Street launched the spider S&P 500 ETF spy a big idea that inspired the world to invest differently and still does what can you do with spy before investing consider the funds investment objectives risks charges and expenses visit ssha.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks only TS are subject to risk including possible loss of principle distribution Jim Kramer here to share with you a sample of my take on the market from today's CVC investing club morning meeting I sometimes search for metaphors because they make things clear Jeff and there was a great movie called butch Cassie and Sundance kid where they were always asking each other who are those guys we have a rally where we almost have to ask who are those guys who are rallying because it's very quiet he's going up but it's happening yeah I mean you pointed out yesterday utilities have been doing well some staple stocks have been acting a little bit better especially versus discretionary energy has been strong today you're seeing some tech weakness some semiconductor stocks are acting a little soft maybe part of that's due to arm guidance we can talk about arm in a moment but there's also this notion this earning season we've pointed this out where companies we've seen some pretty good quarters but if there's one slight bit you know the slightest thing wrong about the guidance they are just getting pummeled now maybe not everyone is going to be right that type of reaction but it is something you can't ignore no and what you have to do is very interesting you could say the first quarter people guy down tougher but think about you're the CFO of proctor gamble do you think there's really anything difference between the second quarter and the first quarter so people gravitate to companies that don't have any sort of cliff or don't have a slowdown I interview Brian Chesky this morning now Brian is concerned maybe there is a bit of a travel slowdown well you're not going to have a bit of a tide or crest slowdown and that's why proctor could go up all the time JP Morgan Morgan Stanley you're not going to have expensive stocks go down as long as there's some buoyancy and they do well in a longer and do well in a rate cut situation no for sure Morgan Stanley 97 I still that's a new 52 week high yeah at the same time you have Costco they were out with their monthly sales for April last night core comparable sales up 5.5 percent company wide missed the street estimates of 6.2 percent but I would say it's still really strong timing of Easter negatively impacted total sales incomes by a little bit more than half a percent you're seeing the stock up in reaction at it's club climbed all the way back right where it was before this was right before the quarter it fell off the quarter was good it was actually just more of an expectation thing given the stock strong move you got the higher for longer chattery and about the membership increase we're also going to have a technician say if it can't take out that high it's going to go back down I say take a look at when Costco is at 717 people were bailing furiously but Costco is one of those companies that is consistent and doing well and it's offering a bargain because their prices indeed are lower than everybody else's because they tell the suppliers if you want to be in our stores cut your price yeah and it's for everything right you also had non-food sales there's we're at mid-signal digit a little bit of a slowdown from low double-digit in march but it was the sixth straight quarter of growth and considering what we've seen from some other you know consumer retail companies you know what we've heard that can be a good sign that they're taking share yes everyone else and you know probably it's because of price join the CMC investing club with Jim Kramer to catch my member exclusive morning minis every day at 10 20 a.m. visit cnbc.com/morningtake to become a member today that's one word morning take all opinions expressed by Jim Kramer on this podcast and in connection with the CNBC investing club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet or another medium no specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer the opinions offered in connection with this podcast and the CNBC investing club are not an attempt to induce any particular trading behavior investment or strategy you should be aware of the risk of loss and following any strategy or investment discussed in the content from Kramer to view the full CNBC investing club disclaimer please 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