WSJ What’s News - What’s News in Markets: CarMax Woes, Intel Soars, Tylenol Pressure

Episode Date: September 27, 2025

Why did CarMax’s earnings spook investors? And how has Intel stock gained 46% this month? Plus, what’s driving a sharp selloff in Kenvue shares? Host Jack Pitcher discusses the biggest stock moves of the week and the news that drove them. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Viking committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, cultural enrichment, and all-inclusive fares. Discover more at viking.com. Hey listeners, it's Saturday, September 27th. I'm Jack Pitcher for the Wall Street Journal, and this is What's News and Markets. Our look at the biggest stock moves of the week and the news that drove them. Let's get to it.

Stocks opened hot this week when all three major indexes set records on Monday, but markets lost steam as the week went on, and not for any lack of good economic news. The government's final estimate of second quarter GDP growth came in at a strong 3.8%, compared with a prior estimate of 3.3%. Meanwhile, weekly jobless claims showed a drop in the number of Americans who newly filed for unemployment, and monthly durable goods orders bounced back. All three data points back up the idea that the AI-powered American economy is just fine, and in fact it sets a heat back up.

That's the very view that's pushed stocks to record after record in recent weeks. So what gives? Well, skeptics point out the historically expensive valuations for top tech stocks and signs of stress among lower-income consumers. But for now, markets aren't all that phased, finishing Friday just under records. For the week, the S&P 500 dropped 0.3% while the Dow was 0.1% lower. The tech-heavy NASDAQ fell 0.7%. The good times keep rolling for Intel.

A Wall Street Journal report Thursday, the chipmaker has approached both Apple and Taiwan's semiconductor manufacturing about partnerships sent the stock soaring. That came after last week's news that InVideo, will invest $5 billion in Intel as part of a new partnership. Intel has notched a string of victories since the U.S. government agreed to take a 10% stake in the long-suffering chipmaker. And so, patient investors have been rewarded. Since hitting decade-plus lows as recently as July, Intel's stock has almost doubled. Shares rose 20% this week, and they're up 46% so far this month, on pace for their best

performance since 1987. Of course, not everything is soaring. CarMax, the biggest seller of used cars in the U.S., posted dismal earnings on Thursday. That sent its stock tanking. Used car sales fell sharply in the second quarter, crashing back to Earth following a first quarter spike. That was fueled by higher demand due to uncertainty about tariffs. Sales and profits came in far below eight. analyst estimates, and CarMax's CEO told analysts the consumer has been, quote, distressed for a little

while. The earnings were the latest point of concern for an auto industry that's had a tough 2025, and their further evidence of a slowdown in the so-called real economy that isn't benefiting from huge spending on AI. CarMax shares fell 20% Thursday to a five-year low, and they lost 23% for the week. The maker of Tylenol, Kinvue, is continuing to struggle after an explosive White House news conference on Monday. President Trump warned the public that pregnant women should not take Tylenol due to its alleged links to autism. It was an event that stunned many of the nation's doctors and public health experts, some of whom dispute that there are any links. Kenview is now preparing for an explosion of litigation over its popular pain reliever.

The drugmaker has successfully fended off past lawsuits, including most notably in 2023, when a federal judge ruled there wasn't sufficient evidence that Tylenol caused autism and dismissed lawsuits against Kenvue. Shares of the company fell more than 10% this week and are down 23% for the year. And now you know what's news and markets this week. Today's show is produced by Rodney Davis with Deputy Editor Chris Zensley. I'm Jack Pitcher. Have a great weekend and see you next Saturday. As companies seek to close growing gaps in skills and talent,

Deloitte U.S. CEO Jason Garzadas believes it's important for organizations to understand their baseline of skills. There's so many organizations that can't ask and answer the fundamental questions about how much computer science or data management skills do I have. or AI development skills in a given domain. By performing a skills inventory, leaders can truly understand where their efforts should be focused. Being blind to those gaps is the real miss. Visit deloitte.com to learn how your enterprise

can help successfully cultivate talent.