The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0954 GMT - The Federal Reserve could increase interest rates at an aggressive pace of 50 basis points at the next policy meeting if U.S. jobs data due in December come in stronger than expected and if oil prices rise, MUFG Bank's Derek Halpenny says in a note. However, MUFG does not expect such a significant rate increase. Instead, it predicts a 25 basis points rate increase at the December meeting. "It's still more a risk than a core view but it would alter the current balanced expectations in the markets." (miriam.mukuru@wsj.com)
0948 GMT - The dollar rises to a four-week high against basket of currencies on increased bets for a 25-basis-point interest-rate hike by the Federal Reserve in December following Tuesday's higher-than-expected U.S. inflation data. However, further gains are likely subject to stronger expectations of a 50-basis-point rate increase, DHF Capital S.A's Bas Kooijman says in a note. "With a December hike already the base case, further dollar gains may require stronger bets on a half-point move," he says. A firm PPI reading on Friday or hawkish Fed remarks could lift dollar, while softer data or resistance to a larger hike could unwind some of the currency's gains, he says. The DXY dollar index rises 0.2% to as high as 102.515. (emese.bartha@wsj.com)
0943 GMT - CoreWeave shares trade higher in premarket trading after the cloud-computing company said it expects fourth-quarter revenue to beat analysts forecasts alongside in-line third-quarter earnings. "CoreWeave delivered about the best quarter we could have asked for. They're continuing to mature as a company, executing better with every print, and managing the narrative more competently than they ever have," Bernstein analysts said. However, the analysts have long-term concerns about the business model and believe the company will be among the first and hardest hit when data-center capacity eases. Bernstein has an underperform rating on the stock and $54 target price. Shares are up 11% in premarket trading at $54.20 (ian.walker@wsj.com)
0942 GMT - Anthropic's IPO valuation shows that investors are pricing AI companies more rationally, according to Julius Bar in a research note. Anthropic's price values the Claude maker at up to $1.4 trillion fully diluted, well below the reported figure of $2 trillion from earlier this year. "The target valuation range below prior indications, in our view, does not mean the AI wheel is broken," it says. Julius Bar thinks these developments are "healthy," which could contribute to a sustainable, long-term growth trajectory for the AI ecosystem, it says as it remains constructive on cloud computing and AI. (tracy.qu@wsj.com)
0937 GMT - CSG's earnings miss and lower guidance will hurt investor appetite for the stock, J.P. Morgan analysts write. The Czech arms maker missed operating earnings before interest and taxes expectations due to selling short-range ammunition at big discounts to clear inventory, JPM notes. "Given the investment community is already very worried about the long-term demand for land warfare products, this miss and downgrade will only fuel those concerns," JPM says. Analysts will materially cut their 2026 estimates, JPM adds. CSG reiterates its medium-term guidance, but investors are unlikely to put too much weight on that, the analysts add. Shares are down 15%. (michael.hennessey@wsj.com)
0930 GMT - Gold prices tick higher after Tuesday's slide, but further gains are capped by stronger-than-expected U.S. inflation data and expectations of higher interest rates next month. New York futures rise 0.8% to $4,063.90 a troy ounce. A firmer dollar and rate-hike expectations weighed on bullion in the previous session after Federal Reserve governor Christopher Waller said he is leaning toward supporting a 25-basis-point December rate hike, but didn't rule out a larger 50-basis-point move. "Treasury yields surged as traders fully priced in a December hike and two additional increases by next June," analysts at Saxo Bank say. "Support around $4,000 has held for now, with resistance at $4,155." (giulia.petroni@wsj.com)
0911 GMT - Shares of European semiconductor companies are on the rise as solid third-quarter results from cloud-computing company CoreWeave reignite appetite for artificial intelligence. In Asia, South Korea's SK Hynix closed 5.4% higher, while Samsung Electronics gained 3.6%. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 3.2% and 6%, respectively. French semiconductor-materials maker Soitec is up 9.4%. German chip maker Infineon Technologies adds 6.7%. STMicroelectronics shares are up 4.1%. Meanwhile, the E-mini Nasdaq 100 futures contract is up 1.6%, pointing to a strong opening for tech stocks in the U.S. (mauro.orru@wsj.com)
0901 GMT - London's miners rise in opening trade after investor optimism was boosted by strong earnings overnight from artificial intelligence cloud-computing provider CoreWeave. This performance helped ease some doubts about the AI cycle and the hundreds of billions of dollars of investment the sector needs. This is positive for mining stocks given data centers rely on copper and other critical minerals. Copper miner Antofagasta is up 3.3% while diversified miners Glencore and Anglo American are both 2.5% higher. Precious metals miner Hochschild Mining gains 2.5%. (adam.whittaker@wsj.com)
0854 GMT - Oil prices tick higher after a two-day decline as uncertainty surrounding U.S.-Iran negotiations continues to provide support. Brent crude is up 0.3% to $91.77 a barrel after dipping below $90 in the previous trading session, while WTI futures rise 0.1% to $86.10 a barrel. Persistent attacks on shipping in the Strait of Hormuz are tempering hopes of de-escalation between Washington and Tehran, as both sides continue to fight for control of the strategic waterway. Market attention now turns to official U.S. oil inventory data due on Thursday following reports citing American Petroleum Institute figures indicating a rise in crude stockpiles last week. (giulia.petroni@wsj.com)
0854 GMT - TSMC's plan to invest in Anthropic and OpenAI is a mild surprise to Morningstar analyst Phelix Lee. TSMC has traditionally avoided taking equity stakes in its end-customers to focus purely on contract chip making. But Lee thinks the investments are more neutral than they look, given Anthropic and OpenAI are the biggest large language model developers globally by revenue, and TSMC committed $500 million to each. Meanwhile, there have been similar examples in the semiconductor industry, such as Dutch lithography maker ASML offering stakes to its three largest customers Intel, TSMC and Samsung Electronics, he notes. The investments "symbolize skin in the game" and create windows for periodic communications, he adds. TSMC's shares ended 4.8% higher at 2,395 New Taiwan dollars. (sherry.qin@wsj.com)
0842 GMT - Shares in U.K. home builders fall after Taylor Wimpey cut guidance on the continuing headwinds the market is experiencing. The home builder's update noted a more subdued autumn selling season, with completions guidance trimmed and operating profit guided to the bottom end of the consensus range for the first time. "Despite an increasingly attractive valuation as a result, investors are currently unwilling to commit with better value being seen elsewhere in the sector, such that the market consensus of the shares as a hold will likely remain intact," Interactive Investor's Richard Hunter says. Taylor Wimpey is down 2.4%, followed by Crest Nicholson, down 1.1%, and Persimmon, down 0.5%. (anthony.orunagoriainoff@dowjones.com)
0830 GMT - Taylor Wimpey cutting guidance shows the home builder continues to struggle in a difficult market, Quilter Cheviot analyst Oli Creasey says in a note. Management has steered full-year adjusted operating profit toward the bottom of consensus at roughly 265 million pounds; while broadly priced in by analysts, this still marks a severe cut from the initial 400 million pounds guidance issued at the start of the year, Creasey notes. "The silver lining for investors may be the reiteration of expectations of a net cash position of 250 million pounds at year end, even after returning around 240 million to shareholders in the year through dividends and share buybacks," he says. Shares are down 3.5% at 79.48 pence.
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