What Cramer thinks a potential government shutdown, auto strike mean for equities

Published Wed, Sep 27 202311:08 AM EDTUpdated Wed, Sep 27 202311:15 AM EDT

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 Wednesday's key moments. Equities give up gains Costco reports Amazon's antitrust woes 1. Equities give up gains Stocks lost steam in midmorning trading Wednesday, with the S & P 500 down 0.07%, as equities gave up early gains and bond yields again strengthened. The yield on the 10-year Treasury was hovering around above 4.5%. However, Jim Cramer said Wednesday that a potential shutdown of the federal government , in conjunction with an escalating strike by the United Auto Workers union, could "take out a big chunk of economic activity." That would result in bond yields falling, Jim argued, ultimately boosting stocks. At the same time, oil prices soared by more than 2% Wednesday, with West Texas Intermediate crude trading above $92 a barrel. And the market is now officially in oversold territory, according to the S & P 500 Short Range Oscillator , meaning we're looking for buying opportunities. 2. Costco reports Club holding Costco Wholesale (COST) delivered solid quarterly results Tuesday after the closing bell, beating expectations on both the top and bottom lines and improving gross margins year-over-year. The results demonstrated solid comparable sales and strong membership renewals, as the company opened nine new locations in the quarter. Consumer traffic was up 5.2% worldwide and 5% in the U.S. Costco also said it saw inflation trend downwards during the quarter. At the same time, the company did not implement a membership-fee hike or a special dividend. But we continue to see the former as a question of when, not if. 3. Amazon's antitrust woes The Federal Trade Commission, in a highly anticipated antitrust lawsuit, alleged Tuesday that Club name Amazon (AMZN) wields "monopoly power" to inflate prices, degrade quality for shoppers and unlawfully exclude rivals, undermining competition. While we'll be watching the case closely, we don't see it as a fundamental concern for the stock. Moreover, Citigroup notes that the e-commerce market is actually becoming more competitive, with companies like Walmart (WMT) and Shopify (SHOP) gaining share. And ,at the same time, many on Wall Street have argued a breakup of Amazon would unlock value, with the sum of its parts greater than the whole. (Jim Cramer's Charitable Trust is long COST, AMZN. 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.