Jim Cramer’s Top 10 Market Moves to Watch: Wednesday, August 19 Explained Simply

A Note on Timing: This article covers market commentary from Wednesday, August 19, 2020. Some stock prices and specific details have changed since then, but the lessons about how to read market signals remain valuable!

Why This List Matters

Imagine you’re getting a cheat sheet from a Wall Street veteran before the market opens. That’s exactly what this is! Jim Cramer (host of CNBC’s Mad Money and manager of a charitable trust portfolio) shares his daily top 10 things to watch. Think of it as your "morning coffee briefing" for investing.

[!IMPORTANT] Key Concept: "The Club"
Throughout this article, you’ll see references to "Club name" or "the Club." This refers to the CNBC Investing Club with Jim Cramer—a subscription service where members get trade alerts before Jim makes moves in his charitable trust portfolio.

The Rules of the Road:

• 45-minute rule: After a trade alert goes out, Jim waits 45 minutes before buying/selling.
• 72-hour rule: If Jim discussed a stock on TV, he waits 72 hours after the alert before trading it.
• No guarantees: This is educational, not personalized financial advice. No fiduciary duty exists.

The Top 10 Breakdown

1. The Treasury’s Big Move: "The Trump Put"

What happened: The U.S. Treasury Department announced it will more than double how much government debt it buys.

Why it matters:

• Bond yields (interest rates on government loans) had been shooting up recently—scary for stocks.
• This move calms the bond market → stock futures jump.
• Cramer calls this a "Trump administration put" (Wall Street slang for: the government stepping in to prop up stock prices).

ELI5 Analogy: Imagine the stock market is a wobbly bike. The Treasury just put training wheels on it.

2. Moderna & Merck: The Cancer Vaccine Breakthrough

The headline: Moderna stock surged over 90% pre-market!

The science made simple:

• Moderna + Merck tested an experimental cancer vaccine for melanoma (a serious skin cancer).
• It’s a late-stage trial (final testing phase before FDA approval).
• Results showed real promise—Cramer says they "cracked the holy grail."

Why this changes everything for Moderna:

• The stock had heavy "short interest" (lots of people betting against it).
• Cramer said last month this vaccine made Moderna "finally investable again."
• Merck shares also up ~7% (they’re partners).

[!TIP] Vocabulary Check: "Short Interest"
When investors borrow shares to sell them, hoping the price drops so they can buy back cheaper. High short interest = many people expect the stock to fall. Good news can cause a "short squeeze" (rapid price jump as they rush to cover).

3. Target: Great Numbers, Stock Down?

The paradox: Target reported much better-than-expected earnings AND raised full-year guidance. Yet the stock pulled back.

Cramer’s take:

• "Broad-based strength" across all categories.
• New CEO Michael Fiddelke is "cleaning up the place," investing in stores & better merchandise.
• Why the drop? The stock "had run into the print" → it rose before earnings in anticipation. This is likely profit-taking (investors locking in gains).

Lesson: Sometimes great news is already priced in.

4. Lowe’s vs. Home Depot: The Pro Advantage

Lowe’s Q2: Mixed bag

• EPS (earnings per share) beat expectations.
• Revenue & same-store sales (sales at stores open >1 year) missed.
• Full-year outlook cut on several metrics.

Home Depot winning (again):

• This is quarter #2 in a row Home Depot beats Lowe’s.
• Secret weapon: Bigger exposure to professional contractors vs. DIY weekend warriors.
• In a brutal housing market, pros keep working; DIYers pull back.
• Buying trade distributors like SRS helped immensely.

ELI5: Home Depot sells to builders who have to buy. Lowe’s sells more to homeowners who choose to buy.

5. TJX Companies: Beating Estimates But…

The numbers:

• Top line (revenue) & bottom line (profit) both beat.
• Same-store sales at Marshalls & T.J. Maxx disappointed.
• Stock down over 3.5%.

Cramer’s perspective:

• Market priced in some weakness already.
• Rest of business (HomeGoods, Sierra, etc.) looks great.
• Current quarter guidance is light (conservative)—but management always guides low.
• Bullish signal: Accelerating new store openings = confidence in future.

6. SK Hynix: The $29 Billion Buyback Bazooka

The move: Korean memory-chip giant announces $29 BILLION stock buyback plan.

Market reaction: NY-listed shares up 4%+ pre-market.

The big question: Will this stop the selling and stabilize the stock?

Why it matters to YOU:

• SK Hynix & Samsung (other Korean memory maker) drag the whole "data center cohort" (related stocks) up or down.
• Cramer’s Club owns rival Micron instead.
• Bonus: Cramer interviewing Micron CEO Sanjay Mehrotra tomorrow on Mad Money!

[!NOTE] What’s a "Buyback"?
Company uses cash to buy its own shares off the market. Fewer shares = each remaining share owns a bigger slice of the pie (higher EPS). Usually signals management thinks stock is cheap.

7. Nokia & Cisco: The AI Networking Play

JPMorgan’s take on Nokia:

• Market is overlooking Nokia’s AI revenue potential.
• Analysts say consensus estimates underestimate order book strength for 2027–2028.
• Cramer: "Started to look interesting earlier this year."

Cisco connection:

• Also a networking play (builds the "plumbing" of the internet).
• Gave up lots of post-earnings gains.
• Club exited Cisco in March (partly to raise cash).

Key insight: AI isn’t just chips—it needs massive networking infrastructure. These companies build it.

8. Klarna: Buy Now, Pay Later Gets a Reality Check

What happened: JPMorgan downgraded to Hold from Buy after bad guidance sent stock down ~23% yesterday.

Analysts say Klarna needs:

• "Multiple quarters of clean execution" to win back trust.
• To close the valuation gap to peers.

Wells Fargo cut price target to $21 from $26.

Cramer’s question: "Are we seeing a rationalizing of the buy now, pay later space? This one really gaffed people."

ELI5: BNPL (Buy Now, Pay Later) lets you split payments at checkout. Klarna is a big player. Investors got too excited; now they’re asking: "Show me consistent profits."

9. J.M. Smucker: The Lone Food Stock Working

Standing out: In a tough food sector, Smucker is the only one really working.

Why:

• Moderating coffee prices → Folgers & Café Bustelo volumes recovered in Q1.
• Jefferies hiked price target to $140 from $129, kept Buy rating.

Cramer’s preference: "We’d rather play coffee deflation via Club name Starbucks."

• Has faith in the turnaround under new CEO Brian Niccol (ex-Chipotle).

Lesson: Sometimes the best way to bet on a trend (cheaper coffee) isn’t the obvious company.

10. Cardinal Health: Nuclear Medicine = Future Profits

RBC Capital Markets action:

• Initiated coverage with Buy rating.
• Price target $276 (more optimistic than Club’s $265, raised last week).

The exciting part: RBC loves Cardinal’s nuclear medicine business.

• Makes & distributes radiopharmaceuticals (radioactive drugs used in imaging tests like PET scans).
• Expects this to drive significant profits going forward.

Club context: Cardinal issued rosy profit guidance for fiscal 2027 last week.

[!TIP] Radiopharmaceuticals?
Think: Tiny amounts of radioactive material attached to molecules that target specific cells (like cancer). Doctors inject them, then scan to see exactly where disease is. Growing fast in diagnostics & treatment.

Summary: Your Wednesday Cheat Sheet

FAQ: Your Questions Answered

Q1: Should I buy these stocks exactly when Cramer mentions them?

A: No! This is a watchlist, not a buy list. Cramer often says: "Don’t buy on the headline; do your homework." Plus, Club members get trade alerts before he trades—and even then, he waits 45–72 hours. Use this as research starting points.

Q2: What’s "same-store sales" and why does everyone obsess over it?

A: It measures sales at locations open at least 12 months. It strips out growth from just opening new stores. If same-store sales rise → existing customers buy more (healthy). If they fall → core business weakening (warning sign).

Q3: Why does SK Hynix’s buyback affect Micron and other chip stocks?

A: Memory chips (DRAM, NAND) are commodities—like oil. SK Hynix, Samsung, and Micron are the Big 3. They watch each other’s moves closely. A massive buyback signals SK thinks its own stock is cheap—which implies chip prices/profits may rise, helping peers too.

Q4: What does "the Club exited Cisco to replenish cash" mean?

A: Portfolio management 101: You sell winners (or laggards) to raise dry powder (cash) for better opportunities. It’s not necessarily "Cisco is bad"—it’s "we have something else we like more right now."

Q5: How can I get these "Top 10 Morning Thoughts" daily?

A: Sign up for the free email newsletter (link in original article). For trade alerts & portfolio access, you’d join the paid CNBC Investing Club. Always read the Terms, Conditions & Disclaimer—no guaranteed outcomes!

Final Thought: Think Like a Detective, Not a Follower

Cramer’s daily list isn’t about blindly copying trades. It’s a masterclass in pattern recognition:

• Macro moves (Treasury/Fed) → set the stage
• Earnings reactions → reveal expectations vs. reality
• Sector dynamics (Home Depot vs. Lowe’s) → show competitive positioning
• Innovation signals (Moderna’s vaccine, nuclear medicine) → flag long-term trends
• Sentiment shifts (Klarna, Target profit-taking) → warn of overcrowded trades

Your homework: Pick one item above. Read the actual earnings call transcript or press release. Ask: "What would make me change my mind?" That’s how you build your own edge.

Disclaimer: This article summarizes market commentary from August 19, 2020, for educational purposes. It is not investment advice. The author holds no position in mentioned securities. Past performance ≠ future results. Always consult a qualified financial advisor before investing.