Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0856 GMT - Palantir's second-quarter results are strong, but the technology group will struggle to beat sky-high expectations going forward, Jefferies analysts write. A near-doubling of quarterly revenue and a lift to the company's 2026 outlook encouraged investors following earnings reported after market close Monday. However, Palantir has now set a very high bar, one that it will need perfect execution to clear, the analysts say. "We are fundamental fans, but the setup gets harder from here." Growth outside of the U.S. is moderating, while Palantir stock is valued for no slip-ups, they say. Other AI-linked companies offer a better risk-reward outlook, like Microsoft, Amazon and Snowflake, the analysts add. Shares jump over 15% premarket.(josephmichael.stonor@wsj.com)

0858 GMT - AB InBev can look forward to a strong earnings performance for the year after posting a solid first half, James Edwardes Jones at RBC Capital Markets writes in a note to clients. The brewer of Corona and Bud Light said the soccer World Cup and a more premium mix helped lift revenue and earnings above market expectations over the first six months of the year. That should ensure the Belgian-listed group nets organic growth in its Ebitda above the midpoint of a targeted 4%-8% range for the year, according to RBC's estimates. The bank lifts its target price on the stock to 93 euros from 85 euros.(joshua.kirby@wsj.com; @joshualeokirby)

0842 GMT - Continental's second-quarter beat could trigger low-single-digit percentage consensus EBIT upgrades, UBS analyst David Lesne writes. The tires EBIT margin in the first half is above the full-year guidance range of 13%-14.5%, so not raising or narrowing the guidance in tires is a bit disappointing, but there is a chance the outlook could be raised later on this year, the bank adds. "In any case, Conti will return to shareholders circa 12 euros/share over the coming quarters (related to ContiTech disposal) and is delivering metrics significantly above some peers while trading on an unjustified valuation discount, in our view." Shares fall 1.2%. (dominic.chopping@wsj.com)

0849 GMT - BP seems to be taking a more selective approach to selling assets after lowering its disposal guidance to between $8 billion and $9 billion for this year, RBC Capital Markets analyst Biraj Borkhataria writes. The British energy major had previously guided for up to $10 billion. This is a sensible approach given the stronger macroeconomic environment, he writes. Overall, BP's new five priorities to turn the company around fall under the general bucket of "do better", he adds. "BP will need to 'walk the talk' consistently over the coming quarters to re-build investor confidence," he says. BP shares rise 1% to 557.70 pence. (adam.whittaker@wsj.com)

0849 GMT - Ams-Osram had a solid set of second-quarter figures, UBS analysts write in a note to clients. The Austria-based electronics company posted revenue of 805 million euros, above Visible Alpha consensus of 778.3 million euros and a UBS forecast of 774.4 million euros. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization of 136 million euros also beat consensus of 120.4 million euros and a UBS estimate of 117.6 million euros. Analysts say third-quarter guidance is roughly in line with expectations. Ams-Osram is projecting revenue of about 820 million euros and an adjusted Ebitda margin of roughly 16% at the midpoint against consensus of 796.7 million euros and 16.6%. Ams-Osram shares trade 6.7% higher at 17.76 Swiss francs. (mauro.orru@wsj.com)

0846 GMT - The sharp rise in cocoa prices on Monday punished speculators betting against the commodity, though there was no obvious driver of the rally, HCCO analysts write. "The market is once again struggling to identify a clear fundamental trigger for yesterday's movement." New York cocoa jumped over 10% Monday to close at $5,939 a metric ton. More speculative traders took bets against cocoa last week, a move that was "swiftly punished yesterday," the analysts write. Trade flows are dominating moves in cocoa contracts, they say. Cocoa contracts pare gains slightly Tuesday, slipping 0.6% to $5,903 a ton. (josephmichael.stonor@wsj.com)

0839 GMT - Although Travis Perkins doesn't give any 2026 financial guidance it has made encouraging early progress in rebuilding profitability in the general merchant division, RBC Capital Markets analysts Andrew Brooke and Karl Green say. Toolstation UK, the building-materials retailer's multichannel business, continues to perform in line with expectations as it passed through supplier price increases and continued to grow market share. The company appears to be making good strategic progress with further self-help opportunities and discussions underway to sell Toolstation Benelux, the analysts say. "We continue to see significant upside potential from self-help and market recovery at some point," RBC says. Shares are up 18% at 678.50 pence, and are up 27% over the past 12 months.(anthony.orunagoriainoff@dowjones.com)

0817 GMT - Continental's decision not to upgrade full-year guidance will probably be viewed as conservative, Bernstein analysts write. The German tire maker reported an EBIT beat in the second quarter, taking margins above 15%. The main debate ahead of earnings was on guidance, with many investors expecting an upgrade on the back of the second-quarter strength. This is understandable since tire margins were 14.9% in the first half versus the existing full-year guidance of 13.0-14.5%, Bernstein says. Management may point to the upper end of the guidance range on the analyst call, but with consensus margin expectations already at 14.0% for 2026, any estimate upgrades may be limited, the bank adds. Shares fall 0.6%. (dominic.chopping@wsj.com)

0812 GMT - Shares of European semiconductor companies are in green territory after the Nasdaq Composite in the U.S. logged strong gains in Monday's session. The tech-heavy index closed 2.1% higher, boosted by stocks exposed to artificial-intelligence infrastructure. Positive sentiment extended to Europe on Tuesday, with shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International up 2.7% and 2.2%, respectively. German chip maker Infineon Technologies is up 4.1%. STMicroelectronics shares gain 2.7%. The E-mini Nasdaq 100 futures contract trades 0.6% higher, indicating a positive opening for tech stocks in the U.S. (mauro.orru@wsj.com)

0802 GMT - Current oil prices include only a modest geopolitical risk premium despite persistent uncertainty in the Middle East, analysts at Goldman Sachs say. The U.S. bank estimates that Brent crude, the global oil benchmark, is fairly valued at around $80 a barrel based on oil inventories, expected demand from OECD countries, its estimate of the long-term value of oil and historical trading patterns linking inventories to prices. Goldman expects Brent to remain in its $80-$90 range until either a new U.S.-Iran deal is reached or the conflict escalates significantly. Still, the physical market is getting tighter amid lower flows from the Persian Gulf and the Red Sea, lower Russian oil exports, and stronger Asian imports. "Our estimated Persian Gulf flows edged down to 36% of prewar levels versus nearly 80% of prewar levels in the first half of July," they say. (giulia.petroni@wsj.com)

0755 GMT - China's activity indicators likely softened in July, partly due to extreme weather events and a seasonal slowdown, according to Citi analysts in a research note. Citi expects industrial growth to decelerate to 4.8% on year in July from 5.3% in June, with production subindex in the PMI survey slipping into contractionary territory. The reading could still be higher than the low rates seen in April and May, thanks to the buoyant high-tech sectors and a "more benign base", the analysts say. "An investment rebound may not take place in July with weather events and yet-to-accelerate policy deployment," they say. (tracy.qu@wsj.com)

0747 GMT - British energy major BP has received unsolicited approaches expressing interest in its North Sea oil assets, the company's CEO Meg O'Neill tells CNBC. O'Neill has told new U.K. Prime Minister Andy Burnham that the country should prioritize using oil and natural gas reserves from the North Sea, she said. "We generate jobs, we generate tax revenue, we generate all those additional positive impacts." BP shares rise 1.2% to 558.7 pence.