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--:-- Jack Pitcher: The U.S. Forest Service is improving wildfire prediction models with Google AI. This is a new era of American innovation. Find out more at g.co slash American Innovation.
--:-- Jack Pitcher: Hey listeners, it's Saturday, September 27th. I'm Jack Pitcher for The Wall Street Journal, and this is What's News in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's get to it.
--:-- Jack Pitcher: 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.
--:-- Jack Pitcher: All three data points back up the idea that the AI-powered American economy is just fine, and in fact is set to heat back up. That's the very view that pushed stocks to record after record in recent weeks. So what gives?
--:-- Jack Pitcher: 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.
--:-- Jack Pitcher: For the week, the S&P 500 dropped 0.3%, while the Dow was 0.1% lower. The tech-heavy Nasdaq fell 0.7%.
--:-- Jack Pitcher: 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 NVIDIA will invest $5 billion in Intel as part of a new partnership.
--:-- Jack Pitcher: 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.
--:-- Jack Pitcher: Shares rose 20% this week and they're up 46% so far this month, on pace for their best performance since 1987.
--:-- Jack Pitcher: Of course, not everything is soaring. CarMax, the biggest seller of used cars in the U 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.
--:-- Jack Pitcher: Sales and profits came in far below 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.
--:-- Jack Pitcher: And they're 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.
--:-- Jack Pitcher: The maker of Tylenol, Kenvue, 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.
--:-- Jack Pitcher: 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. Kenvue is now preparing for an explosion of litigation over its popular pain reliever.
--:-- Jack Pitcher: 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.
--:-- Jack Pitcher: Shares of the company fell more than 10% this week and are down 23% for the year.
--:-- Jack Pitcher: And now you know what's news in markets this week.
--:-- Jack Pitcher: Today's show is produced by Rodney Davis with Deputy Editor Chris Zinsley. I'm Jack Pitcher. Have a great weekend and see you next Saturday.
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