Deep Dive: Car-related stocks take it on the chin, with declines of up to 25% in one day

by | Sep 29, 2022 | Stock Market

U.S. stocks sold off again on Thursday, with CarMax and several vehicle manufacturers and parts makers among the worst performers. The S&P 500
SPX,
-2.11%
fell 2.1% for the session to a new closing low for 2022, with all but 39 stocks showing declines for the day. The benchmark index is down 23.6% for the year.

The Dow Jones Industrial Average
DJIA,
-1.54%
fell 1.5%, while the Nasdaq Composite Index
COMP,
-2.84%
fared worst, with a 2.8% drop. Here’s a year-to-date chart showing the sharp reversal of the recovery that had started after the S&P 500’s June 16 low:

FactSet

Shares of CarMax Inc.
KMX,
-24.60%
plunged 25% on Thursday, as the used-car giant reported results for its fiscal quarter ended Aug. 31 that missed consensus estimates for sales and earnings among analysts polled by FactSet. The company said its unit sales were hurt by “vehicle affordability challenges that stem from widespread inflationary pressures, as well as climbing interest rates and low consumer confidence.” Read: CarMax stock suff …

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