The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1451 ET - EchoStar's stake in SpaceX will drive a majority of its value, UBS analysts say, upgrading the stock to buy. EchoStar will hold a 2% stake in SpaceX once its pending spectrum transaction closes, which is expected in November 2027, the analysts say. EchoStar got the shares at a pre-IPO price, but the stake is now worth $39 billion at the current stock price, the analysts say. EchoStar is also likely to record $31.5 billion in cash proceeds from its spectrum deals with AT&T and SpaceX, which the analysts think will be used to pay off debt and make future investments.(katherine.hamilton@wsj.com)
1440 ET - Grindr could end up as a healthcare business with a dating app attached. The company has already ventured into telehealth with its Woodwork business, which supplies performance medications for erectile dysfunction and other treatments. But Grindr's "healthcare aspirations are much larger than Woodwork," Morgan Stanley analysts say in a note, following meetings with Grindr leadership. "Management believes the health revenue opportunity could be larger than the core business in time." The company is looking to expand into STD prevention & management, and eventually seeks to provide broad clinical services for its users. (elias.schisgall@wsj.com)
1413 ET - Adobe is in a reset year as management looks to boost its freemium audience at the expense of near-term annual recurring revenue recognition. That means, Morgan Stanley analysts say in a note, that the company is likely to reiterate its full-year ARR growth target rather than pointing toward a material inflection. "The focus into 3Q26 results should be assessing underlying momentum and/or indicators that could increase confidence in a path to ARR growth stabilization/inflection in FY27," the analysts say. Those indicators include repeat usage, credit replenishment, paid starts, and retention metrics, they add. The analysts keep their underweight rating on the stock as they await signals that the new strategy is proving effective. (elias.schisgall@wsj.com)
1243 ET - While the trade threat has yet to be translated into formal policy, an outright ban on U.S. sales would deal a severe blow to Canadian business jet maker Bombardier, says Scotiabank analyst Konark Gupta. The analyst says it is "too early to assess the fundamental risk as BBD has thus far navigated the geopolitical uncertainties without any major demand impact." The headline risk is clear, however, with the stock is down 4%, though Gupta notes that it is "similar to early 2025 (tariff risks) and early 2026 (de-certification and tariff threats)." He adds that if the threat turns into a ruling, "the potential impact would be significant, given the U.S. accounts for the majority of BBD's business." (adriano.marchese@wsj.com)
1241 ET -- Qatar leads major Gulf stocks higher, with the QE Index rising 0.7%. Abu Dhabi's benchmark index advances 0.5%, the Dubai Financial Market General Index gains 0.3% and Saudi Arabia's Tadawul All Share Index edges up 0.1%. Kuwait Financial Centre Markaz says GCC equities are expected to remain driven by oil prices and regional geopolitical developments, while resilient non-oil activity and strong fiscal positions continue to support regional economies. Oil prices remain elevated after fresh attacks on Saudi energy infrastructure, with Brent nearing $100 a barrel in early European trading before retreating to around $97.80, while WTI futures also rise to about $93.76 a barrel. (farhan.rafid@wsj.com)
1142 ET - Airbnb looks like it can keep growing nights booked--a key metric for the company--by double digits as it reaps the benefits of its artificial intelligence initiatives, Raymond James analysts say in a note. Users will likely book more nights through the platform given its new AI-driven search experience, and as hosts increasingly adopt the company's AI-driven dynamic pricing tools, the analysts say. Airbnb's expansion into hotels, and the rise of a reserve now, pay later option, should also boost nights, they say. The analysts now expect nights to grow more than 10% in 2027, above Wall Street's estimate of 9%. They upgrade the stock to outperform from market perform. (kelly.cloonan@wsj.com)
1111 ET - Home sales slipped 0.6% year-over-year in August and fell sharply from July, Zillow says. Mortgage rates holding above 6.5% kept many buyers on the sidelines. Newly pending listings, a forward-looking measure of demand, fell 2.6% from a year ago, a sign that the slowdown could continue through the remainder of the year. The typical U.S. home value rose 1.3% from a year ago to $369,678, and the monthly mortgage payment on the typical home was 2% higher than last year, Zillow says. Inventory continues to offer a modest bright spot, with 1.41 million homes for sale nationwide, up 3% from a year ago. Homes took a median of 27 days to go pending in August. That's the same as last year and two days longer than July, according to Zillow.(chris.wack@wsj.com)
0944 ET - Prediction market and exchange Kalshi says the volume of commodities-related contracts traded over the past seven months hit $400 million. That's more than four times the volume that the exchange's crypto offerings had at the same point in their lifecycle, the company says. Kalshi's commodities prediction markets include gold, silver, copper, WTI crude oil, Brent crude, gasoline, and natural gas. The exponential growth means a few things, a spokeswoman for the company says. "This trend highlights not only the huge demand for commodities prediction markets, but also the compounding power of Kalshi's platform," the spokeswoman says. (kirk.maltais@wsj.com)
0754 ET - UBS raised its oil-price forecast as the market continues to face tight supply and declining inventories. Brent crude is now expected to reach $95 a barrel by year-end, up from the previous forecast of $85 a barrel. Prices are supported by lower global exports, falling oil inventories and geopolitical risks in the Middle East, analysts at the bank say. Chinese crude imports have also recovered from their June lows, suggesting stronger demand in the coming months. Overall, UBS expects crude prices to remain elevated, with Brent forecast at $90 a barrel in March 2027. The global oil benchmark currently trades 1.7% higher at $98.68 a barrel. (giulia.petroni@wsj.com)
0746 ET - Computacenter benefits from continued demand for artificial intelligence, AJ Bell's Dan Coatsworth writes in a note. The U.K.-listed technology and services provider is experiencing a surge in demand related to the development of AI infrastructure led by North America, he notes. "Computacenter is not only buying and sourcing kit for the big AI players but is also helping to design, build and maintain the necessary infrastructure as a cherry on top," he says. While the company's record order book is driven by rising demand, questions arise as to whether this situation will last, he adds. Shares are down 6% at 52.65 pounds.(najat.kantouar@wsj.com)
0711 ET - Germany's 2027 renewable energy act provides stronger demand visibility in Nordex's key home market in the midterm, Citi analysts write. The act--known as EEG 2027--is due to become effective on Jan. 1 after the Federal cabinet adopted the draft proposal over the summer. "We already saw a strong 2027-28 for Nordex's earnings as likely given Nordex's order backlog and visibility from auctions," the analysts say. Support is now expected to extend into 2029, they add. Citi raises its rating on the stock to buy from neutral and the target price to 50 euros from 48 euros. Shares are up 1.7% at 41.10 euros and are 41% higher over the year to date.(ian.walker@wsj.com)
0702 ET - Computacenter's order backlog growth provides visibility, Peel Hunt analysts write in a note. The FTSE 100 technology and services provider raised its full-year guidance and reported a record product-order backlog as of June 30. The company benefits from its tech clients' ability to place order further in advance to ensure capacity, they say. "Computacenter remains the best proxy for U.S. hyperscale spend, and it is showing no signs of slowing down," they add. Shares are down 5.1% at 53.15 pounds.
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