Cramer’s Morning Take: Costco 1/8/26

Summary

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Podcast Summary: Squawk on the Street – Cramer’s Morning Take: Costco (1/8/26)

Hosts: Jim Cramer, Carl Quintanilla, David Faber
Date: January 8, 2026
Main Theme:
Jim Cramer’s market take for the morning centers on early January stock patterns, notable movements in lagging vs. strong sectors, and a particular focus on Costco’s standout December results – and what it signals for investors looking beyond tech.

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Key Discussion Points & Insights

The Start of the New Year: Patterns or Randomness?

• Market Moves:

  • Noteworthy bounce in previously underperforming stocks, while previously strong tech names are selling off.
  • Cramer’s View (01:02):

    "We are seeing stocks that have been horrendous bounce big. We are seeing stocks that have been amazing, particularly tech, really sell off. Do you see a pattern or is it random to you?"

• Potential Causes:

  • David Faber suggests it's too early to read strong meaning into the shifts, noting this is common for the first week of January.
  • Faber (01:21):

    "A lot of stocks that lagged last year that had disappointing years... the underperformers have bounced back. I don't know if it's just the first week of January, maybe people are looking for new ideas."

  • Investors may be backing away from names that had big tech runs, searching for opportunities in other parts of the market.

• Cramer's Market Memory:

  • Cramer relays a personal anecdote about seeing a similar January mini-boom in commodity stocks decades ago (copper, aluminum). It fizzled quickly, serving as a caution against extrapolating early January trends.
  • Cramer (01:49):

    "First week of the year. Strange patterns don't bank on them having any longevity."

Tax-Loss Selling and Sector Shifts

• Tax-Loss Selling (02:20):
  • Faber notes that the rebound could be driven by the end of tax-loss selling, where investors sell losers in December for tax purposes, then may re-enter or rotate into new names come January.
  • Some stocks that lagged may now be seeing attention as the new year brings new positioning.

Costco: Standout December Sales

• Costco’s Outperformance (02:30):

  • December monthly sales were up 8.5% year-over-year, with US core comparable sales (excluding gas and FX) accelerating from November.
  • Noted in contrast to other retail and big box players.
  • Faber:

    "Costco, we saw monthly sales last December. They were up very nicely, up eight and a half in December. US core comps... they actually accelerated from November."

• Why the Move Isn’t Over:

  • Cramer highlights the strong performance as not being “done yet,” especially versus Walmart – implying a reversion or catch-up could be in play.
  • Cramer:

    "The underperformance of this versus Walmart is rather extraordinary and that's not going to continue."

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Notable Quotes & Memorable Moments

• Cramer on Market Expectations (01:49)

  "First week of the year. Strange patterns don't bank on them having any longevity."

• Faber on Tax-Loss Dynamics (02:20)

  "It could be the end of tax loss selling...maybe stocks did lag towards the end of last year. Maybe things are getting better."

• Cramer on Costco vs. Walmart (02:52)

  "The underperformance of this versus Walmart is rather extraordinary and that's not going to continue."

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Important Segment Timestamps

• 01:02 – Cramer begins his market take: bounce in laggards, tech selling off.
• 01:21 – Early January market action: is it a trend or just noise?
• 01:49 – Cramer recalls historic January runs, urges skepticism.
• 02:20 – Discussion of tax-loss selling's impact on stock action.
• 02:30 – Costco’s December sales performance and sector comparison.
• 02:52 – Cramer bullish on Costco continuing its run versus Walmart.

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Tone & Style

The episode maintains Cramer’s trademark energetic, no-nonsense style, with practical anecdotes and a cautious outlook on interpreting early January trends. Both Cramer and Faber keep the discussion focused, leaning on experience and fresh sales numbers, particularly highlighting Costco as a bullish standout for 2026.

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Transcript

[A]

Oh, could this vintage store be any cuter?

[B]

Right.

[A]

And the best part, they accept Discover. Except Discover in a little place like this. I don't think so, Jennifer. Oh, yeah, huh? Discover's accepted where I like to shop. Come on baby, get with the times. Right. So we shouldn't get the parachute pants. These are making a comeback, I think.

[B]

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[C]

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[D]

AT&T business Wireless connecting changes everything.

[B]

Hey, it's Kramer and this is my morning take on the market from today's CBC Investing club morning meeting. So I got to tell you something. We are seeing stocks that have been horrendous bounce big. We are seeing stocks have been amazing, particularly tech, really sell off. Do you see a pattern or is it random to you?

[D]

Well, look, I think a lot of stocks that lagged last year that had disappointing years, maybe outside the financials, which have been strong this year, but the underperformers have bounced back. I don't know if it's just the first week of January, maybe people are looking for new ideas. They're looking at some of the runs within tech and saying, all right, why don't we, you know, look elsewhere in the market. It is broadening out. I think it's just too early to read into things.

[B]

That's my view. I mean people want to very much. I remember years ago when my kids were like five and two went to Disney World for the first week of this, of the year and there was a run in copper and aluminum and Phelps Dodge that point, which now pager duty in Alcoa and I said, oh my God, I can't believe it. I can't believe for three straight days they went up, they went to new all time highs and then they just disappeared. You never saw it again. And it reminded me, please, first week of the year. Strange patterns don't bank on them having any longevity.

[D]

It could be the end of tax loss selling. Right, the stocks were down. If investors were down on it, they sold it because they had a loss. They can use that to offset gains. But at the same time. There are situations where maybe stocks did lag towards the end of last year. Maybe things are getting better. Just going to jump around a bit. But Costco, we saw monthly sales last December. They were up very nicely, up eight and a half in December. US core comps, which is excluding effects and the gasoline sales, they actually accelerated from November.

[B]

Look at this move. I mean we talked about just we recommended Nice call by Larry, but this is not done. Now. I'll tell you why it's not done. The underperformance of this versus Walmart is rather extraordinary and that's not going to continue. Start your day with my outlook on the market Every morning. Visit cnbc.commorningtake to become a CNBC Investing Club Member at a special rate today.

[A]

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC or its 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 kraemr. 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. To view the full CNBC Investing Club disclaimer, please visit cnbc.com investingclubdisclaimer@ Capella University, we believe accessible education can make a difference. That's why we offer scholarship opportunities to all eligible students. Unfuturo differente estamas serca de lo que cres con Capella University. Learn more at Capella Eduardo.