Amazon turns the grocery business on its head, again — but don't sell Costco on it

CNBC

4 days ago

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 Wednesday's key moments. 1. The S & P 500 and Nasdaq hit intraday all-time highs for the second straight session, but have come off the boil a bit. Both indexes finished with record-high closes Tuesday after cooler-than-expected consumer inflation data put a near lock on a Federal Reserve interest rate cut next month, with increasing odds of additional cuts in October and December. "I am concerned that things are too exuberant," Jim Cramer said during the Morning Meeting, ahead of Thursday's Monthly Meeting for Club members at noon ET. Health-care, consumer discretionary, and financial stocks were leading Wednesday's market higher. Our newest stock, Cisco Systems , reports earnings after Wednesday's closing bell. 2. Nvidia shares fell nearly 2% — catching some selling pressure on the post-earnings decline of CoreWeave , which rents Nvidia chips for AI workloads. Piper Sandler, however, raised its price target on Club stock Nvidia to $225 per share from $180 and kept its overweight buy rating. The analysts see upside to the quarter and outlook due to recent positive commentary from U.S. hyperscalers and the inclusion of revenue from China. There have been reports about whether customers there are buying the China-specific chip that was allowed back on the market. "They are buying it like mad," Jim said, adding he has that news on good authority from someone close to the situation. 3. Amazon on Wednesday announced that it launched same-day delivery of meat, eggs, and produce in more than 1,000 cities and towns in the U.S. The service is expected to expand to at least 2,300 localities by the end of the year. "Once again, the bargain of Prime is so incredible," Jim said. Shares of grocery chains Kroger and Albertsons were down more than 4% and 2.5%, respectively. Club name Costco was down roughly 1%. But Jim said Costco shouldn't be down because it doesn't compete with Amazon on delivery. Costco is a "price business, a volume business," he explained. 4. Stocks covered in Wednesday's rapid fire at the end of the video were Cava , Brinker , and CoreWeave . (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.