The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0910 ET - Bitcoin finding its highest levels since May is reshaping how investors are evaluating overall markets. "This year's quiet patch in crypto never reflected a loss of belief in the asset class," says Nigel Green of deVere Group in a note. "It reflected liquidity being pulled elsewhere, into an overheated AI and semiconductor trade." The timing of this while bitcoin has been stuck in rangebound trade all summer is creating the explosive movement, Green adds. "Every one of those pressures is now easing at the same time, and Bitcoin is repricing accordingly." Bitcoin is up 6.2% to $77,194, according to LSEG data. Ethereum rises 2.9% to $2,385, XRP is up 10.8% to $1.37, and solana is up 3.7% to $90.76. (kirk.maltais@wsj.com)
0905 ET - BJ's Wholesale Club is winning over customers at the gas pump, as prices remain elevated across the country. The warehouse club chain says comp gallons were up double digits during the latest quarter, marking an acceleration from 1Q and serving as "a clear signal of the share we continue to take," CEO Bob Eddy says on a call with analysts. "Gas prices are about as visible as it gets for consumers," he says. "There's a price on every street corner, and our members know that we offer great value." Eddy says that strong volume growth, coupled with a favorable pullback from peak gas prices, drove fuel profit dollars ahead of expectations and meaningfully contributed to the company's overall results. Shares climb 1.5% premarket. (connor.hart@wsj.com)
0855 ET - This week's surge in cryptocurrencies follows a collapse in trading volumes last month, J.P. Morgan analysts write. Crypto tokens are jumping on incremental improvement in the outlook for the industry's regulatory outlook, they write. Though the crypto-friendly Clarity Act remains stalled in the Senate, investors are more optimistic following comments from President Trump and positive action from the SEC and CFTC, they say. The improved sentiment comes after trading volumes across the crypto ecosystem fell by more than 30% through July compared to June, down more than 50% on year. Volumes are on track to deteriorate through August, the analysts say, besides a one-day spike following a White House meeting of crypto executives Wednesday. Bitcoin jumps 6% to $77,369.29, while Ethereum gains 2.9% to $2,392.26. (josephmichael.stonor@wsj.com)
0848 ET - Along with the recent surge in cryptocurrency prices is a jump in trading volumes. A measure of "apparent demand" for bitcoin has crossed into positive territory for the first time since late February, analysts with CryptoQuant say in a note. Spot buying has overtaken selling, which the firm says could be a precursor to a bigger run. "Genuine spot accumulation resuming while valuations stay depressed is the setup that has preceded Bitcoin's strongest, most reliable advances," says CryptoQuant. Bitcoin spiked as high as $79,258 overnight before retreating back to $76,680. (kirk.maltais@wsj.com)
0837 ET - Cryptocurrencies are rallying on a flurry of positive catalysts, but it remains premature to call the start of a new bull run for the asset class, Jefferies's Andrew Moss writes. The rally in crypto tokens is driven by positive signals from U.S. regulators, and the Treasury's surprise move to increase its buybacks of longer-dated U.S. government bonds. However, the sharp increase in currencies is partly driven by short covering, with investors yet to show significant enthusiasm by buying into crypto. Bitcoin jumps 5.16% to $76,774.10, pairing some of the session's earlier gains. Ethereum gains 2.3% to $2,378.54. (josephmichael.stonor@wsj.com)
0823 ET - BJ's Wholesale Club posts stronger-than-expected sales and solid comps in 2Q, JPMorgan analysts say in a research note. The largely positive report gave the warehouse club chain confidence to raise its adjusted earnings outlook for the year, especially as gasoline sales outperformed expectations. JPM estimates that gas sales provided 20-cents-a-share worth of upside to the recent quarter, offset by a roughly 4-cents-a-share of selling, general and administrative reinvestment. The analysts note BJ's often reinvests in SG&A when gas profits come in better than expected, driving membership retention and making the lap next year easier. Shares gain 2.5% premarket. (connor.hart@wsj.com)
0818 ET - BJ's Wholesale Club reports largely better-than-expected second-quarter results against a consumer backdrop with plenty of volatility, William Blair analysts say in a research note. Comparable sales growth, excluding fuel, of 3.1% topped Wall Street estimates and came as a relief to investors, who are looking for signs that healthy trends can continue through the remainder of the year. "We expect investors will focus on third-quarter-to-date trends on rising concerns of a consumer pullback and the go-forward outlook for merchandise margins as competitors continue to lean into promotions and price cuts," the analysts write. BJ's shares tick up 3% premarket. (connor.hart@wsj.com)
0754 ET - European sporting goods market conditions are unlikely to improve materially over the next two quarters, J.P. Morgan analysts write in a note. The second quarter has been tough, with limited guidance upgrades and a few downgrades across the industry, they note. "Growth is slowing as brands prioritize full-price direct-to-consumer sales in a highly promotional market," they say. Additionally, talks with investors clearly suggest concerns about a structural slowdown in sector profit growth. However, it is too early to assume that there is a structural slowdown in footwear demand, they add. JD Sports shares are up 6%. ( najat.kantouar@wsj.com)
0739 ET - European stocks will underperform because of the uncertain path to artificial-intelligence monetization, Bank of America analysts write. Increased competition from both China and within the U.S. will force AI model makers to offer more competitive price, potentially dragging on sky-high profit expectations, the analysts say. The higher cost of borrowing will also weigh on companies' bottom line, they say. European stocks are priced for a continued boom in spending on AI, but a reversal in AI momentum would undermine that optimism. The analysts expect the Stoxx 600 to fall 10% to 580 by the second quarter of 2027. The index rises 0.3% Friday after falling for seven straight days. (josephmichael.stonor@wsj.com)
0558 ET - Arkema delivered a robust second-quarter performance but concerns remain, Bernstein analysts James Hooper and Sebastien Afoy write in a note. The French adhesive manufacturing company continues to show improved cost discipline and higher-margin products are contributing more positively, they say. However, full-year guidance appears cautious and the company still faces prolonged slowdown in residential-construction markets in its key end market Europe and the U.S., they add. "With upwards pressure on interest rates, we are not expecting this to turn soon," they say. Shares are up 1.6% at 60.05 euros. ( najat.kantouar@wsj.com)
0540 ET - U.S. stocks linked to cryptocurrencies continue to rise premarket, spurred higher by a surge in bitcoin and ethereum. Investors are increasingly confident in the regulatory outlook for crypto in the U.S., even if the crypto-friendly Clarity Act doesn't pass, Bernstein analyst Gautam Chhugani writes. "The industry expects accelerated rule making for supporting native crypto tokens, tokenized equities, perpetual futures" and other crypto-related activities, Chhugani says. Bitcoin trades up 6.6% at $77,794.84, while ethereum adds 2.7% at $2,389.07. Bitcoin-hoarder Strategy jumps 9.3% premarket, on pace to rise by over 30% since market close Tuesday. Crypto exchanges also gain, with Coinbase and Hyperliquid Strategies rising 6.2% and 3.2%, respectively. Robinhood Markets adds 5.1%.(josephmichael.stonor@wsj.com)
0529 ET - Experian's North American consumer market shows some underlying growth concern, Bernstein analysts Will Kirkness and Filippo Giardini write in a note. The credit-reporting agency's North American Membership and Marketplace growth now stands at only about 2%, they note. Additionally, risks related to revenue contribution from new and scaling products remain, they say. "We forecast 5.2% and 4.8% organic growth in fiscal 2028 and fiscal 2029--2-3ppts below expectations," they add. Shares are down 2.4% at 28.95 pounds.
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