WSJ What’s News in Markets: Soup Stock, AI Angst, Lululemon Rebound

Date: December 13, 2025
Host: Francesca Fontana

Episode Overview

This episode of "What’s News in Markets" delivers a concise roundup of the week's most significant market movements, earnings reports, and business trends. Host Francesca Fontana spotlights the Fed's rate cut, the latest swings in artificial intelligence-related stocks, and a dramatic rebound for Lululemon. Coverage is breezy yet analytical, with personal touches and wit, aimed at keeping listeners up to date on Wall Street's biggest stories.

Key Discussion Points & Insights

1. Federal Reserve Rate Cut and Market Performance

• Main Theme:

  • The Federal Reserve cut interest rates by a quarter point on Wednesday, a move that dominated headlines and was eagerly anticipated by markets.

• Market Impact:

  • The Dow Jones rose about 1% for the week—supported by the Fed's announcement.
  • The S&P 500 fell 0.6%.
  • The Nasdaq dropped 1.6%.

• Quote:

  • “This week was Fed week, everybody. The Federal Reserve announced its interest rate cut on Wednesday, a quarter point cut. The central bank decision was a big headline of the week.”
    — Francesca Fontana [00:36]

2. The ‘Critical Soup Season’ and Campbell’s Stock Decline

• Seasonal Trends & Company Performance:

  • Campbell’s, a company intricately linked to colder weather, faced significant challenges, reporting both top and bottom line declines this week.

• Main Pressures:

  • Ongoing tariffs from President Trump’s administration led to increased prices and pressured earnings.

• Stock Reaction:

  • Campbell’s shares fell 5.2% on Tuesday after the earnings announcement, recovering slightly to end the week down 2.9%.

• Quote:

  • “It is what I call and foodmaker Campbell’s calls the critical soup season. Critical for me on a personal level as a known soup enthusiast. Critical for Campbell’s vis a vis its revenue and earnings from its canned soup business, which is still getting pressured by President Trump’s tariffs.”
    — Francesca Fontana [01:47]

3. AI Boom: Investor Anxiety Hits Oracle & Broadcom

• Shifting Sentiment on AI:

  • Recent enthusiasm for artificial intelligence investments has wavered, with investors questioning the sustainability and profitability of the sector.

• Oracle:

  • Missed both revenue and operating income expectations in its earnings report.
  • Increased spending forecasts raised worries about delayed AI profitability.
  • Stock impact: Shares sank 11% on Thursday; -13% for the week.

• Broadcom:

  • Posted rapid sales growth, but forward-looking concerns—such as a contract backlog and sales forecasts—drove shares down 11% on Friday; -7.8% for the week.

• Memorable Moment:

  • "In its report, Oracle missed expectations for its revenue and operating income and it raised its spending forecast, fueling investor concern that its AI aspirations will take longer to pay off."
    — Francesca Fontana [02:39]
  • "Broadcom shares sank 11% on Friday on a weekly basis. Oracle lost about 13% and Broadcom lost about 7.8%."
    — Francesca Fontana [03:33]

• Contextual Note:

  • This sharp reversal comes after a September surge, when Oracle had posted a 36% one-day gain, emblematic of the earlier ‘AI trade’ euphoria.

4. Lululemon’s Wild Week: Executive Change Sparks Rally

• Company Troubles:

  • Lululemon, the athleisure giant, had been enduring a tough year, with U.S. sales slowing and stock lagging.
  • Year-to-date, Lululemon stock was down around 46% as of Friday’s close, compared to the S&P 500’s +16% in 2025.

• Reversal Trigger:

  • Stock surged after news broke of the CEO's exit and the estranged founder's interest in a proxy fight over a “loss of cool” for the brand.
  • Stock impact: Rose 9.6% Friday; ended the week up 7.9%.

• Quote:

  • "Lululemon shares are down roughly 46% as of Friday’s close, compared with the S&P 500's year to date gain of roughly 16%. But Friday's news helped the stock turn things around, at least for the day, with Lululemon shares jumping 9.6% and ending the week with a gain of 7.9%."
    — Francesca Fontana [04:18]

Timestamps for Major Segments

• 00:28 — Opening; Weekly Market Overview & Fed Rate Cut
• 01:47 — Campbell’s Soup Earnings and Stock Performance
• 02:39 — Oracle & AI-Driven Tech Stock Anxiety
• 03:33 — Broadcom’s Earnings & Broader AI Sentiment
• 04:18 — Lululemon Rebound, CEO Exit, Founder Proxy Fight

Notable Quotes & Memorable Moments

• “The Nasdaq and S&P 500 both ended lower for the week, while the Dow managed to stay in the green. Bolstered by the Fed’s rate cut, the Dow notched a weekly gain of roughly 1%.”
  — Francesca Fontana [00:57]

• “Critical for me on a personal level as a known soup enthusiast.”
  — Francesca Fontana [01:49]

• “Oracle shares sank 11% on Thursday, dragging the Nasdaq down into the red for the day and putting into stark relief how the sentiment around the brave new world of AI has shifted.”
  — Francesca Fontana [03:00]

• “On Friday shares were riding high after the company announced the departure of CEO and after the Wall Street Journal reported that its estranged founder is eyeing a proxy fight to address the brand’s so-called loss of cool.”
  — Francesca Fontana [04:09]

Tone and Language

• Francesca’s narration is clear, informative, and laced with personal flair—especially when discussing market seasonalities ("soup season") and referencing market jargon ("Fed week," "AI trade").
• Commentary is neutral but direct, with a healthy respect for both the ups and downs in the markets.

Further Resources

Francesca closes by referencing her column, “The Score,” for deeper coverage of stocks that moved on the week’s news in the Wall Street Journal’s Exchange section.

Summary prepared for listeners who missed the episode, covering every significant insight and story while mirroring the original informative and dynamic style of the host.