What Amazon's move to close its Go and Fresh stores means for investors (and Costco)

CNBC Finance

3 min read

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch â an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets are higher on Tuesday with the S & P 500 hitting a new all-time intraday high. But the "broadening out of the rally" trend is taking a back seat, as market leadership centered around technology stocks and the Magnificent Seven. Corporate earnings will command even more investor attention over the next few days. We'll be focused not only on how companies performed in the fourth quarter and what they anticipate for the quarter and year ahead, but also on how the market reacts to their results. Several factors come into play during earnings season, including investor expectations and recent stock performance, which shape the so-called "setup" into earnings. Say goodbye to Amazon GO and Amazon Fresh physical stores . Amazon shared in a blog post on Tuesday that it is shutting down these two concepts and converting various locations into Whole Foods Market stores. The decision was made as the company prioritizes investments and accelerates Whole Foods expansion plans. Amazon said it plans to open more than 100 new Whole Foods stores over the next few years. We see this as an incrementally positive move for Amazon as it upgrades its physical store footprint to what is likely a better economic model. Amazon's update may also be pressuring Costco shares on Tuesday amid concerns about increased competition. In the short term, Costco should benefit from nationwide pantry loading following the recent winter storms. But Amazon's Whole Foods expansion plans create a stronger reason to carefully watch Costco's membership renewal rates over the next few quarters. Up next : Earnings pick up over the next 24 hours with Texas Instruments , Seagate Technology , Nextpower (formerly known as NEXTracker), and PPG Industries among the many companies reporting. Wednesday morning is the busiest of the quarter for the Club, with Danaher , Corning , GE Vernova , and Starbucks scheduled to report. Other key reports include AT & T , ASML Holdings , Amphenol , VF Corp , Brinker International , Otis Worldwide , and General Dynamics . There's also a Fed meeting on Wednesday, and the committee is widely expected to leave interest rates unchanged. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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 discussed a stock on CNBC, 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.

Get the most out of Gold Price Tracker & Alerts

Join thousands of users. Track progress, stay informed, and succeed with Gold Price Tracker & Alerts.

Download Now

Available on iOS & Android

Get Gold Price Tracker & Alerts

Free on iOS & Android

Install

What Amazon's move to close its Go and Fresh stores means for investors (and Costco)

Read Next

Big Tech earnings show how big, smart spending can be rewarded by the market

Greg Abel earns solid scorecard from Berkshire shareholders after first annual meeting

Get the most out of Gold Price Tracker & Alerts