WSJ What’s News in Markets: Intel Rallies, Amazon Delivers, Tapestry Plummets

Date: August 16, 2025
Host: Liz Young

Overview

This episode of WSJ What’s News in Markets, hosted by Liz Young, recaps the biggest market moves and financial headlines from the past week. The discussion covers critical economic data, notable company developments such as Intel’s share rally and Amazon’s grocery delivery expansion, and significant challenges for luxury retailer Tapestry. The focus is on the intersection of macroeconomic trends and market news, highlighting the factors influencing investor sentiment and stock performance.

Key Discussion Points & Insights

1. Economic Data Wrap-Up

(00:32–01:30)

• Producer Price Index (PPI): Rose 0.9% in July, the largest monthly increase in over three years.
  • "The Producer Price Index showed prices rose 0.9% in July. That was the largest monthly increase in more than three years." (00:39)
• Consumer Price Index (CPI): Increased 2.7% year-over-year in July, same as June’s gain.
• Retail Sales: Up 0.5% in July, matching economists’ expectations.
• Consumer Sentiment: University of Michigan survey indicated the first decline in four months, with inflation expectations rising.

2. US Equity Markets Performance

(01:30–02:10)

• Dow Industrials:
  • Hit a new intraday record on Friday, buoyed by Warren Buffett’s Berkshire Hathaway taking a stake in UnitedHealth.
    • "The Dow Industrials set a new intraday record on Friday, fueled by Warren Buffett's Berkshire Hathaway taking a stake in UnitedHealth." (01:10)
  • Pulled back later; closed the week up 0.1%, just under a record.
• S&P 500 & Nasdaq Composite: Both indexes ended the week lower.

3. Intel’s Share Price Surge

(02:10–03:08)

• US as Shareholder: Reports emerged that the US government might become an Intel shareholder; President Trump discussed this possibility during a meeting with Intel’s CEO.
  • "As we reported, President Trump discussed the idea on Monday during a meeting with Intel's CEO, Lipp Bhutan. It's important to note that the talks are in early stages and could fall apart." (02:19)
• Market Performance:
  • Intel shares ended up 20% for the week, rebounding from steep losses over the past year related to competition in the AI chip sector.

4. Amazon Expands Grocery Delivery

(03:08–03:45)

• Service Expansion: Announced same-day grocery delivery in 1,000 US cities, planning to reach 2,300 by year’s end.
  • "Amazon this week announced a big expansion of its grocery delivery service. The e-commerce giant launched same day grocery delivery in a thousand cities..." (03:08)
• Strategic Impact:
  • Free service for Prime members to boost orders and market share.
• Market Reaction:
  • Amazon shares rose 4% for the week.
  • Grocery sector competitors’ shares dropped:
    • Instacart owner Maple Bear: Down 14%
    • DoorDash: Down 4%
    • Kroger: Down 6%
    • Walmart: Down nearly 4%
  • "Shares of grocery companies fell on news of Amazon's expansion." (03:37)

5. Tapestry Faces Tariff Headwinds

(03:45–04:28)

• Tariff Impact: Tapestry (owner of Coach and Kate Spade) forecasts $160 million in tariff-related costs this fiscal year.
  • "Tariffs are weighing on the outlook of luxury retailer Tapestry. The owner of brands such as Coach and Kate Spade, on an earnings call this week said it expects to take a $160 million hit on tariff related costs this fiscal year." (03:45)
• Brand Performance:
  • Kate Spade: Sales fell 13% in fiscal Q4; outlook is challenging.
    • "The company also forecast a difficult year ahead for Kate Spade, as the brand's sales fell 13% in its fiscal fourth quarter." (03:59)
  • Coach: Sales up 14%; a bright spot for the company.
    • "A bright spot in the company's earnings report was the successful turnaround of sister brand Coach, where sales rose 14% in the latest period." (04:13)
• Stock Movement:
  • Pre-market drop: Tapestry down 16% Thursday morning; finished the week down about 8%.

Notable Quotes & Memorable Moments

• Liz Young on Market Drivers:
  • "Investors this week have been digging into all kinds of economic data."
• On Intel’s Comeback:
  • "Intel's share price has fallen by more than half since the start of last year as the company has struggled to compete with rivals on the advanced chips powering the AI boom." (02:29)
• On Amazon’s Influence:
  • "Amazon is offering the service free to its prime members as it seeks to grow orders and increase its market share in the competitive US grocery market." (03:20)
• On Retailer Repercussions:
  • "Shares of grocery companies fell on news of Amazon's expansion." (03:37)
• On Tapestry’s Struggles:
  • "Tariffs are weighing on the outlook of luxury retailer Tapestry..." (03:45)
  • "They plan to take strategic and financial steps to return Kate Spade to growth." (04:08)

Timestamps for Major Segments

• Economic Data Recap: 00:32–01:30
• Market Index Performance: 01:30–02:10
• Intel News & Rally: 02:10–03:08
• Amazon’s Grocery Expansion & Market Impact: 03:08–03:45
• Tapestry Earnings & Tariff Impact: 03:45–04:28

This episode provides a fast-paced yet thorough recap of the week’s market-moving events, giving listeners a clear snapshot of key financial stories and what drove major stock movements.