Reevaluating Costco? Good Signs for Linde

Every weekday, the CNBC Investing Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Below is a concise recap of Tuesday’s key moments, enriched with additional market context and technical insight.

1. Anticipation Builds Ahead of the Fed’s Rate Decision

U.S. equities opened higher on Tuesday as investors priced in an expected 25‑basis‑point rate cut from the Federal Reserve—its third reduction in 2025. Cramer emphasized, “If the Fed cuts, that’s just gigantic for some of our stocks,” spotlighting rate‑sensitive names such as Home Depot and a broad swath of technology shares.

From a technical standpoint, the S&P 500 traded above its 50‑day moving average, a classic bullish signal, while the VIX steadied near 15, indicating reduced volatility expectations. The sector rotation favoring consumer discretionary and tech appears to be confirmed by widening relative strength in those areas.

2. Nvidia’s China Deal Adds a New Revenue Stream

Nvidia resurfaced in headlines after President Donald Trump signaled permission for the chipmaker to sell its high‑performance H200 GPUs to approved Chinese customers, contingent on a 25 % U.S. content requirement. Wells Fargo projects the arrangement could generate $25‑$30 billion in annual revenue and lift earnings per share by $0.60‑$0.70.

While the Chinese market represents a modest share of Nvidia’s overall sales, the strategic implication is significant. Access to a high‑growth market offsets recent export‑related headwinds and could accelerate the company’s AI‑hardware roadmap. Investors will be watching the company’s supply‑chain disclosures and compliance reports closely as the deal progresses.

3. Insider Buying at Linde Signals Confidence

Linde (LIN) stock rose 1 % after CEO Sanjiv Lamba purchased 2,520 shares at roughly $396 each—about $1 million in total, according to an SEC filing. The purchase follows a recent 52‑week low of $387.78 and an 18 % decline since October.

Insider buying often serves as a strong bullish indicator, suggesting that management believes the stock is undervalued. Analyst Jeff Marks noted the move could signal that the company’s fundamentals are more resilient than the market perceives. From a valuation perspective, Linde’s forward‑looking EBITDA margin remains robust, and its recent capital‑intensive projects in hydrogen and green ammonia could drive long‑term growth.

4. Costco’s Performance Lags Behind Walmart

Cramer expressed concern over Costco’s trajectory, contrasting it with Walmart’s 26 % year‑to‑date gain. Costco shares have dropped more than 30 % over the same period, despite the retailer’s historically strong franchise model.

Key technical metrics show Costco trading below its 200‑day moving average, a bearish sign that could indicate a longer‑term correction. On the fundamentals side, margin compression from higher freight costs and softer discretionary spending may be weighing on earnings. Investors will be looking for any management commentary in the upcoming fiscal‑2026 Q1 earnings release (Thursday, after market close) that could clarify whether the decline is a temporary setback or a structural issue.

5. Rapid‑Fire Stock Picks

In the closing segment, Cramer highlighted several equities for further observation:

• CVS Health (CVS)
• Toll Brothers (TOL)
• Marvell Technology (MRVL)
• Campbell Soup (CPB)
• PepsiCo (PEP)

His charitable trust remains long on Home Depot, Nvidia, Linde, and Costco.

6. Investing Club Trade Alerts – Process Overview

Subscribers to the CNBC Investing Club receive a trade alert before Cramer executes a transaction. The club’s policy requires a 45‑minute waiting period after the alert for trades in his charitable trust, and a 72‑hour delay if the stock has been discussed on CNBC television. This timing mechanism is designed to mitigate front‑running concerns and align with regulatory best practices.

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