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. Stick with stocks Watch Costco Hold Procter for the long haul 1. Stick with stocks Stocks edged up Wednesday, a day after equities sold off when Federal Reserve Chair Jerome Powell told U.S. lawmakers the central bank could take interest rates higher than previously anticipated. Powell is testifying for a second day on Capitol Hill Wednesday. The S & P 500 was up 0.29% in midday trading, even as the yield on the 2-year Treasury continued to hover around 5%. Higher borrowing costs, or rising interest rates, tend to translate into higher bond yields, pressuring equity markets as Treasuries become a more competitive option for investment dollars. But “it’s not the reason to sell stocks. It’s the reason you can wait,” Jim Cramer said Wednesday. At the Club, we’re long-term investors in the stock market and the broader pullback seen in recent weeks is a buying opportunity. On Tuesday, we added to our positions in Johnson & Johnson (JNJ) as well as Emerson Electric (EMR). 2. Watch Costco We’re confident that Club holding Costco Wholesale (COST) is the perfect retailer to own in an uncertain economy. While the company recently reported softer sales , the membership-only retailer should overall continue to benefit from a volume-based business model that can offer low prices to customers. Moreover, Costco’s profit margins should be further supported by the recent decline in costs for freight, trucking and chemicals. The stock’s 6.3% year-to-date rise has outperformed the S & P 500’s 3.8% return during the same period. Shares were mainly flat Wednesday, at $485.05 each. 3. Hold P & G long term Like Costco, consumer goods giant Procter & Gamble (PG) is benefiting from decelerating commodity costs, which should ultimately help the Club holding soar again as other economic headwinds recede. “Procter is going to crush it next year. When should we care about that? Now,” Jim said Wednesday. The company has shown resilience during a period of high inflation and weaker consumer demand. “If you take a two-year-to-three-year perspective, Procter is probably going to be the best stock” in the Dow Jones Industrial Average , he added. Shares of P & G, which have fallen more than 9% year-to-date, were down around 0.18% Wednesday, at $137.31 apiece. (Jim Cramer’s Charitable Trust is long COST, PG, JNJ, EMR. 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.
