Shares of US auto dealers cratered today after CarMax's Q2 reported catastrophic results which wildly missed estimates, sparking concern about the whole group. EPS of only 79c, almost half the $1.40 consensus estimate, shocked markets, while net sales of $8.14 billion also missed expectations. The stock lost a quarter of its value on Thursday.

A soundbite from the Vital Knowledge newsletter set the tone: it said that KMX "horrendous report" was bad for the stock and autos, but would be welcomed by Fed Chair Jerome Powell as proof the Fed has successfully pushed the economy into a recession. That's because vehicle affordability issues stemmed from inflationary pressures, higher interest rates and low consumer confidence.