The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1127 ET - The estimated funding level of pension plans sponsored by S&P 1500 companies increased by 4 percentage points in April to 108% as a result of an increase in equity markets and a slight increase in discount rates, according to consulting firm Mercer LLC. As of the end of April, the plans' estimated aggregate surplus increased by $59 billion, to $124 billion, compared with a $65 billion surplus at the end of March, Mercer said. "After economic uncertainty and increasing market volatility in March, equities rebounded in April and the S&P 500 rocketed to an all-time high at month-end on strong earnings reports and growing optimism for deescalation in the Middle East," says Mercer partner Matt McDaniel. (jennifer.williams@wsj.com; @jenkayw)
0926 ET - Intesa Sanpaolo's costs in the first quarter were lower than anticipated, but its guidance confirmation means changes to consensus expectations will likely be limited, J.P. Morgan's Delphine Lee and Kian Abouhossein say in a research note. The Italian bank's stronger-than-expected quarterly net profit was driven by higher trading revenue, as well as by lower costs and provisions, the analysts say. Loan-loss provisions were 32% better than JPM's estimate, the analysts say. Intesa still expects revenue growth driven by commissions and insurance revenue, stable costs and a significant decline in cost of risk to help it make a net profit of about 10 billion euros this year, JPM says. "We would expect limited changes to estimates." Shares fall 2.1%. (adria.calatayud@wsj.com)
0728 ET - Intesa Sanpaolo's first-quarter results might disappoint after shares in the Italian bank outperformed European peers over the past month, Keefe, Bruyette & Woods's Hugo Cruz and Ben Maher say in a research note. Net profit exceeded expectations, but this seems a low-quality beat given that it was driven by trading revenue and provisions, the analysts say. Loan-loss provisions were better than expected, but the CET1 capital ratio missed views slightly, they add. The bank reiterated its full-year guidance of around 10 billion euros in net profit, which compares with consensus estimates of about 9.9 billion euros, according to KBW. Shares fall 1.7%, but are still up 3.3% over the past month. (adria.calatayud@wsj.com)
0449 ET - United Overseas Bank's weak fee momentum and widening gap in its wealth franchise versus peer DBS Group are likely to remain headwinds for the former, Phillip Securities Research's Glenn Thum says in a note. UOB's 1Q fee income fell 8% against a record base a year ago, which he found disappointing. Still, he retains his estimates for the lender's 2026 results, projecting full-year earnings to rise 17% on a resilient net interest margin and lower provisions. Phillip Securities retains a neutral rating and S$37.00 target price. Shares fall 0.35% to S$36.57. (megan.cheah@wsj.com)
0445 ET - Intertek appears to prefer the sale of its energy-and-infrastructure unit, Bernstein analyst Will Kirkness says in a research note. The provider of testing, inspection and certification services rejected EQT's new, sweetened takeover offer of 58 pounds a share. The British company said the offer "significantly" undervalues the business, which is an improvement from the previous wording that the last offer "fundamentally" undervalued it, the analyst says. "In our conversations with shareholders, we are yet to speak to anyone who demands above 60 pounds," Kirkness says. There seems to be a preference for receiving the cash now rather than being associated with the execution and time risks, he says. Selling the energy-and-infrastructure unit would be a cleaner solution, he adds. Shares trade 3.15% lower at 48.87 pounds. (nina.kienle@wsj.com)
0327 ET - United Overseas Bank's stock valuation seems decent, reflecting asset quality risks and weaker provision coverage compared with the sector, RHB Research analysts write in a report. With general provision reserve kept at 1% of its performing loans, UOB sees it as enough protection against future asset quality deterioration. While the Singapore bank's exposure to the Middle East is limited, the broader effects are uncertain. UOB also sees its buffers as adequate after adding extra provisions as a precautionary move against Middle East-related risks. RHB maintains a neutral rating on the stock with a target price of S$39.50. Shares are 0.4% lower at S$36.56.(amanda.lee@wsj.com)
0124 ET - U.S. Treasury yields are moving back and forth within well-defined ranges, in tandem with changes in oil prices, Societe Generale rates strategists say in a note. "While bonds remain volatile with the range, the broader narrative is that there will be a sharp reversal in oil prices when the conflict end," they say. The strategists see no clear catalyst for a sustained selloff in bonds. A sell-off toward the key thresholds of 4% in two-year Tresaury yields, 4.5% in 10-year Treasury yields and 5% in 30-year Treasury yields is "an opportunity to leg into longs," they say. The two-, 10- and 30-year Treasury yields trade at 3.909%, 4.387% and 4.966%, respectively, according to Tradeweb. (emese.bartha@wsj.com)
0117 ET - U.S. Treasurys are typically treated as the market's safe harbor when uncertainty rises, but that script hasn't played out in the face of escalating tensions in the Middle East, says Federated Hermes' Karen Manna in a note. "Instead of a classic risk‑off bid into Treasurys, the dominant response has been 'inflation on,' not 'risk off'," the fixed income portfolio manager says. The prospect of inflation settling comfortably back toward the Federal Reserve's 2% target began to look less certain, forcing markets to reconsider the idea of imminent rate cuts, she says. (emese.bartha@wsj.com)
2039 ET - Macquarie's decision to declare a dividend at the bottom end of its payout range suggests the Australian financial group is confident it will have opportunities to deploy capital, Citi analyst Thomas Strong suggests. Strong tells clients in a note that Macquarie has been conservative on capital in its full-year result, pointing out that it is maintaining its dividend reinvestment plan at a discount. The group concluded its buyback program without buying any shares since extending it six months ago, he adds. "All up, we think that MQG is positioning itself for future deployment opportunities," he writes. Citi has a last-published neutral rating and target price of 220.00 Australian dollars on the stock, which is up 0.6% at A$243.33. (stuart.condie@wsj.com)
1943 ET - QBE Insurance's catastrophe claims for the four months through April are a little ahead of Citi's expectations but only because $60 million of Middle East crisis losses are included. Citi says catastrophe claims are favorable versus its allowance. Catastrophe costs of $300 million through April are under its 1H allowance of $517 million. That implies an allowance for May and June of $217 million. "This should be more than sufficient barring a particularly adverse two months," analyst Nigel Pittaway says. Overall, QBE's 1Q update is largely as Citi expected. It has a buy call on the stock. (david.winning@wsj.com; @dwinningWSJ)
1757 ET - The stream of layoffs related to artificial-intelligence continues, with Cloudflare and Upwork joining PayPal, Coinbase, and Freshworks in announcing substantial, AI-inflected cuts to their workforces this week. Upwork says it will cut around 24% of its staff, with CEO Hayden Brown noting that the "nature of work continues to shift as AI advances." Cloudflare CEO Matthew Prince says that the company is "embracing an agentic AI-first operating model," announcing plans to cut approximately 1,100 jobs. Upwork falls 18% after-hours; Cloudflare is down 14%. (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
May 08, 2026 12:20 ET (16:20 GMT)
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