Costco should be higher on ‘incredible’ sales, Wells Fargo is a buy

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 Thursday’s key moments. U.S. stocks advanced Thursday after lower-than-expected weekly jobless claims assuaged investors’ recession concerns following a brutal sell-off earlier in the week. The Dow Jones Industrial Average rose 1.3%, while the Nasdaq Composite and S & P 500 climbed 2.2% and 1.8%, respectively. Jim Cramer said that although the averages “look fantastic, I don’t want to get cocky about this market. Why don’t I want to get cocky? Because the market is not oversold.” At Wednesday’s close the reading on the S & P 500 Short Range Oscillator was –1.11%. Anything above 4% indicates the market is overbought, anything below –5% means the market is oversold. Shares of Costco jumped 3.8% after the company posted upbeat sales numbers for the month of July. Management said removing the impact of gas prices, Costco’s same-stores sales jumped 7.2% last month, topping its 6.9% advance in June. “These are incredible numbers,” Jim said. “The stock deserves to be higher on these.” Wells Fargo stock is a buy on Thursday, Jim said. Shares of the bank took an unnecessary beating earlier in the week during the broader market sell-off. We took advantage of this dip, and have added to our Wells position three times since Monday. This company has quality fundamentals as seen in recent quarterly earnings, and CEO Charlie Scharf is leading the firm in a positive direction. “I continue to believe you can buy Wells Fargo right here, right now,” he said. (Jim Cramer’s Charitable Trust is long COST, WFC. 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.