The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1030 ET - Investors were net sellers of U.S. equities for the second week running last week, with the communication services sector leading the outflows, according to Bank of America analysis. Clients of the bank pulled $3.5 billion from U.S. equities, continuing selling momentum after outflows of $15 billion the prior week. Retail investors drove the selling, Bank of America analysts Jill Carey Hall and Trey Brown say. The communication services sector, which includes telecoms companies and media stocks including Meta, saw its biggest weekly outflow since records began in 2018, they say. Industrial stocks saw the next largest outflows--the 13th straight week of outflows for the sector.(josephmichael.stonor@wsj.com)
1000 ET - Etsy says it is spending more on social media channels where it hopes to appeal to younger shoppers. The online marketplace has shifted more spending to platforms such as TikTok, a channel where Etsy wasn't spending much just six months ago, executives tell analysts on a call. In the third quarter, half of Etsy's impressions on TikTok reached people 18 to 29 years old. The marketing strategy is part of Etsy's effort to win back buyers who may have made a purchase once on the platform, but aren't consistently engaged. (katherine.hamilton@wsj.com)
0919 ET - VF's Altra brand is providing a key hedge against continued weakness at Vans. On a call to investors, CEO Bracken Darrell notes that "Altra had another strong quarter with growth over 40% and up in every region and channel." He attributes it to the brand's new products hitting the shelves as well as its investments in brand awareness. Darrell calls Altra the company's "fastest-growing brand," and Darrell says that its footwear expansion in fiscal 2027 is expected to fully offset the decline in Vans footwear. The momentum at Altra comes as Vans revenue fell 9.8% in the 2Q due to lingering wholesale softness. Shares are down 2.6% to $16.59 in premarket trading Wednesday. (adriano.marchese@wsj.com)
0912 ET - GE Vernova CEO Scott Strazik says the company's $9 billion acquisition of Trench Group, a high-voltage grid equipment manufacturer, marks an important step forward in strengthening and scaling its electrification business in the high- and medium-voltage markets globally. The deal will be additive to earnings on day one and add to GE Vernova's portfolio "industry-leading technology to innovate into the future and serve this growing market," Strazik says on a call with analysts. GE Vernova estimates the global high-voltage market opportunity will reach $130 billion by the end of the decade. "Technology for high-voltage solutions will broaden our grid-equipment portfolio and expand our presence across product lines where we have a modest presence today," Strazik says. (connor.hart@wsj.com)
0909 ET - Etsy is walking a fine line between using AI to improve customer experience, while retaining its reputation for handcrafted items. The company uses AI to personalize shoppers' recommendations, an effort that has contributed two percentage points to Etsy's annualized gross merchandise sales growth rate, Chief Executive Kruti Goyal tells analysts. However, Etsy has faced backlash for allowing AI-created artwork on its platform. "There's an interesting paradox here, as AI makes it easier to create and replicate products at scale," Goyal says. "We aim to help buyers understand not just what they're purchasing, but who's behind it, how it's made, and what makes it special." (katherine.hamilton@wsj.com)
0906 ET - GE Vernova estimates the high-voltage market will reach $130 billion by the end of the decade, and CEO Scott Strazik says there are many factors driving the company's conviction. "Data centers require large electricity loads, driving the increasing need for more efficient high-voltage equipment," he says on a call with analysts, noting that Trench Group has already secured multiple supply agreements with hyperscalers over the past two years. "In addition, global utilities are also building out more high-voltage infrastructure," Strazik says. "Today's grid loses as much as 8% from power generation to end use, and the upgrade of the grid to higher voltages dramatically reduces energy losses, making the whole grid more economical." (connor.hart@wsj.com)
0906 ET -- Etsy says it is seeing improvements from both its buyers and sellers. In the third quarter, active buyers increased year-over-year for the first time in two years, while the number of active sellers increased at its fastest rate in two years. "What's especially encouraging is that we're seeing improvement across both sides of the marketplace," Chief Executive Kruti Goyal says on a call with analysts. Goyal attributes at least some of this growth to internal initiatives geared toward improving the experience for both buyers and sellers, while also bringing better-quality products to the online marketplace. (katherine.hamilton@wsj.com)
0858 ET - GE Vernova's growth is accelerating, driven by both its core business and new offerings, CEO Scott Strazik says on a call with analysts. The energy equipment company, formed from the breakup of General Electric, says orders nearly doubled in the recent quarter, to $29.3 billion, while backlog grew about $20 billion sequentially, to $197 billion. "We now expect our backlog to exceed $200 billion in the fourth quarter," Strazik says. "We continue to see strong pull from customers for the solutions we offer. This demand is not only for our existing equipment, but also for services, where we saw 10% order growth in the quarter." (connor.hart@wsj.com)
0849 ET - VF's Vans brand is still lagging, despite green shoots. Vans global direct-to-consumer revenue turned positive for the first time in nearly five years thanks to what CEO Bracken Darrell says is the brand's "product engine [showing] up in our channels first." However, overall brand revenue fell 9.8% in 2Q, below consensus expectations. On a call to investors, Darrell says the wholesale recovery for Vans is lagging direct-to-consumer by six to nine months and won't meaningfully rebound until 4Q, leaving near-term wholesale revenue under pressure. Shares are trading 3.7% lower in premarket at $16.40. (adriano.marchese@wsj.com)
0842 ET - Tamarack Valley's 3Q result was encouraging as the Canadian company again beat expectations on strong oil production, says Raymond James' Luke Davis. Production of 55,298 oil-equivalent barrels a day was in line with Davis's forecast and slightly ahead of the consensus call for 54,200. The analyst expects strength into 2027, with pro forma production volumes exceeding 80,000 barrels. Although the result was solid, Davis says investors likely are looking ahead to the Nov. 19 close of the Headwater acquisition as the next meaningful catalyst for the stock, which he expects will be accompanied by the 2027 capital budget, improved savings guidance and a refreshed five-year growth plan. (robb.stewart@wsj.com)
0738 ET - DWS's lower-than-expected pretax profit in the third quarter should weaken shares this session, Barclays says in a research note. The German asset manager's adjusted pretax profit was 5.8% below expectations on a 2.2% revenue miss, due to lower performance fees and other revenue, with costs in line, according to the analysts. Despite strong inflows in the period, Barclays expects a negative reaction from investors. Shares trade 1.6% lower at 65.5 euros. (sarah.sloat@wsj.com)
0723 ET - U.K. government bonds and sterling are more likely to show a stronger negative reaction if Wednesday's U.K. budget disappoints than a positive reaction if fiscal measures are credible, Capital.com analyst Daniela Hathorn says in a note. "Sterling and gilts have remained relatively calm ahead of the announcement, suggesting markets are anticipating a cautious fiscal approach." A reassuring budget could ease gilt yields and support sterling but moves will be modest given relatively benign expectations are already priced in, she says. In contrast, disappointing fiscal projections could generate a disproportionate negative reaction, she says. Sterling falls 0.2% to $1.3274 while the euro rises 0.2% to 0.8377 pounds. Ten-year gilt yields rise 1.1 basis points to 5.352%, according to Tradeweb.
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