Key Highlights

● Lithia Motors gained to about $305.40 on Tuesday, September 29, 2026, in a sympathy move after CarMax's Blowout quarter.

● CarMax earned $1.16 a share against consensus of $0.68 to $0.75, with Revenue near $7.9 billion versus $7.03 billion expected.

● Retail used-unit sales rose strongly, used-vehicle margins recovered and CarMax said Buybacks would resume in the fourth quarter.

● CarMax's chief executive said affordability remains on everyone's mind as consumer confidence fell to 81.9.

Lithia Motors, Inc. (NYSE:LAD) rose on Tuesday, September 29, 2026, riding the coattails of a blockbuster quarter from used-car giant CarMax (NYSE:KMX). Lithia gained to about $305.40 during the session. It had no announcement of its own, and the move was a sympathy trade after CarMax's results lifted sentiment across auto retail.

CarMax Sets the Tone

CarMax reported fiscal second-quarter Earnings of $1.16 a share before the opening bell, far above consensus figures of roughly $0.68 to $0.75. Revenue came in at about $7.9 billion, well ahead of the roughly $7.03 billion expected. Retail used-unit sales rose strongly and used-vehicle margins recovered, and CarMax said share repurchases would resume in the fourth quarter. Its shares jumped, though sources differed widely on the size of the gain. Chief Executive Keith Barr struck a cautious note on consumers, saying affordability remains on everyone's mind.

Why Lithia Moved

Lithia is one of the largest automotive retailers in the U.S., selling new and used vehicles through a big network of dealerships and its online Driveway platform, alongside financing, parts and service. When a major peer reports that used-car Demand and margins are improving, investors often extend the read-across to other dealers. The gain was modest compared with CarMax's surge, which is typical for a sympathy move, since Lithia's broader mix makes a used-car beat a partial signal.

Mixed Signals on the Consumer

The Conference Board's consumer confidence index fell to 81.9 in September from 88.6 in August, its lowest reading since 2014 and below the 89.2 forecast. LPL Financial's Jeffrey Roach said Americans feel jobs are more scarce and are pulling back on plans for homes, cars and big-ticket purchases. Borrowing costs are another hurdle for car buyers: the 10-year Treasury Yield climbed to its highest in roughly two decades, and the 30-year hit its highest since 2002.

How the Tape Finished

The S&P 500 closed at 7,670.84, down 12.85 points, and the Dow Jones Industrial Average closed at 51,349.92, down 131.59 points. The Nasdaq Composite ended little changed at 26,797.54. Consumer discretionary stocks were among the weaker groups. New York Fed President John Williams said there is no need for urgency after the central bank's September meeting, and odds of an October rate hike fell to roughly a coin flip.

What to Track

GDP and August PCE arrive on Wednesday, September 30, Nike reports on Thursday, October 1, and the September jobs report follows on Friday, October 2. For auto retailers, CarMax's planned return to buybacks is one follow-up item to track.