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.

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."

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."

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.

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.