Why CarMax Stock Was Up 11% This Week
CarMax (NYSE: KMX) investors beat the market this week as the stock gained 11% through Thursday trading compared to a 1.5% increase in the S&P 500. That increase erased just a small portion of recent losses, though, as the used vehicle retailer's stock is still down over 50% so far in 2022, according to data provided by S&P Global Market Intelligence.
The rally came as investors gained more confidence that consumer spending is holding up well despite inflation and rising interest rates.
Several major banks made encouraging comments this past week about the health of the consumer heading into the final quarter of 2022. Other generally positive third-quarter earnings reports had investors feeling less concerned about a recession on the way. As a result, the S&P 500 jumped by more than 3% early in the week before settling to a 1.5% increase by late Thursday.
Source Fool.com
