Every weekday the CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” live stream at 10:20 a.m. ET. Here’s a rundown of Wednesday’s highlights. Hold on to stocks Watch Costco Hold Procter for the long haul 1. Hold on to stocks Stocks rose on Wednesday, a day after selling shares when Federal Reserve Chairman Jerome Powell told US lawmakers that the central bank may take interest rates higher than previously expected. Powell is testifying for a second day on Capitol Hill on Wednesday. The S&P 500 was up 0.29% in midday trading, even as the yield on the 2-year Treasury continued to climb around 5%. Higher borrowing costs, or rising interest rates, tend to translate into higher bond yields, putting pressure on equity markets as treasuries become a more competitive option for investment dollars. But “it’s not the reason to sell stocks. It’s the reason you can wait,” Jim Cramer said Wednesday. At the Club, we are long-term investors in the stock market and the broader pullback seen in recent weeks is a buying opportunity. On Tuesday, we added to our positions in Johnson & Johnson (JNJ) as well as Emerson Electric (EMR). 2. Look at Costco We’re confident that Club Owned Costco Wholesale (COST) is the perfect retailer to have in an uncertain economy. While the company recently announced smarter sales, the subscription-only retailer should continue to benefit from a volume-based business model that offers low prices to customers. In addition, Costco’s profit margins should be further supported by the recent decline in freight, trucking and chemical costs. The stock’s 6.3% year-to-date gain has outpaced the S&P 500s’ 3.8% return during the same period. Shares were mostly flat on Wednesday, at $485.05 each. 3. Keep P&G in the Long Term Like Costco, consumer goods giant Procter & Gamble (PG) is benefiting from lower commodity costs, which should help the Club keep up again while other economic headlines decline. “Procter is going to crush it next year. When should we care about that? Now,” Jim said Wednesday. The company has shown resilience in a time of high inflation and weaker consumer demand. “If you take a two- to three-year view, Procter is probably the best stock” in the Dow Jones Industrial Average, he said. Shares of P&G, which have fallen more than 9% year to date, declined about 0.18% on Wednesday, at $137.31 each. (Jim Cramer’s Charitable Trust is long COST, PG, JNJ, EMR. See here for a full list of stocks.) As a subscriber to CNBC’s Investment Club with Jim Cramer, you will receive you trade alert before Jim trades. Jim waits 45 minutes after entering a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim has talked about stocks on CNBC TV, it waits 72 hours after issuing the trade alert before executing the trade.THE HOUSE CLUB INFORMATION IS SUBJECT TO OUR DISCLAIMER AND POWERS AND PRIVACY POLICY, IN ACCORDANCE WITH OUR – DISCLAIMER. THERE IS NO LIABILITY OR RESPONSIBILITY FOR, OR T HAS BEEN CREATED, WHICH WILL INCLUDE INFORMATION THAT IS SUBMITTED TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR SPECIFICATIONS ARE GUARANTEED.
