The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1018 GMT - ASML's second-quarter earnings print gives investors many reasons to be bullish on the stock, Bank of America analysts write. Investors are focused on concerns about how quickly ASML can ramp up production of its lithography machines, the analysts say. Still, the Dutch company's management is confident for its production estimates beyond 2027, the analysts say. Company guidance for memory revenue growth of 75% is well ahead of U.S. peers, suggesting ASML will capture the lion's share of spending by memory makers going forward. Moreover, ASML's expanded gross margins won't be transitory, they say. The analysts raise their EPS estimates for 2026 through 2028 by 23%-25%. Shares in the chip-machine supplier rise 1%. (josephmichael.stonor@wsj.com)
1001 GMT - ASML Holding doesn't need to raise prices of its semiconductor-making machines to boost its gross margin next year, Jefferies analysts write in a research note. The Dutch group's CFO Roger Dassen alluded to the possibility of price increases, saying in an earnings call that a tight chip market gave the company better pricing power. However, the sharp uptick in ASML's gross margin in the second quarter and the company's move to raise gross margin guidance for 2026 suggest that ASML doesn't need higher increases to get its margin in the high 50s next year, analysts say. ASML shares trade 1% higher at 1,564.20 euros.(mauro.orru@wsj.com)
0946 GMT - ABB's second-quarter results are once again impressive, with the order-intake beat and upgrade to revenue guidance the key standouts, RBC Capital Markets analysts say in a research note. The Swiss industrial-technology company has excellent positioning not just in the data center equipment field but in electrification investments overall, the analysts say. While pricing still looks modest, it is an improvement over the first quarter and helps the earnings quality of the backlog, they add. The Rotork acquisition makes sense, even if ABB paid full price, RBC says. Shares trade 3.1% lower at 80.6 Swiss francs. (nina.kienle@wsj.com)
0943 GMT - ASML Holding's decision to upgrade its gross margin projections for the year was the biggest surprise in its second-quarter update, Berenberg's Tammy Qiu writes in a note to clients. The Dutch supplier of semiconductor-making equipment raised its sales guidance for the second time, but it also boosted its gross margin outlook this time. ASML's gross margin--a closely watched metric of pricing power and profitability--should come in between 55% and 57% this year, above a prior range of 51% to 53%. "Based on our investor feedback, the gross margin guidance was a positive surprise," Qiu says. ASML shares trade 1.3% higher at 1,569.60 euros. (mauro.orru@wsj.com)
0932 GMT - Publicis Groupe's guidance upgrade driven by new business wins is a positive surprise given that some investors presumed the French advertising group was on the back foot in recent pitches, analysts at Bank of America say in a research note. The latest business wins should also support Publicis' organic growth next year, signaling the company can deliver organic growth of 4% to 5% in net revenue again, the analysts say. The company's new guidance also embeds cautious assumptions for its Sapient tech-consulting arm, which was hit by weak demand in the first half, the analysts add. Shares rise 2.8%. (adria.calatayud@wsj.com)
0926 GMT - ABB's second-quarter results confirm its continued strength in electrification markets, Berenberg analysts Richard Dawson and Scott Humphreys say in a research note. The Swiss industrial-technologies company posted results broadly in line with expectations, alongside higher-than-expected order intake and an upgrade to its revenue guidance, the analysts note. ABB also announced its acquisition of Rotork for $5.5 billion, which should enhance the company's automation offerings, they add. ABB shares trade 2.84% lower at 80.82 Swiss francs. (nina.kienle@wsj.com)
0912 GMT - Although Ocado's cash flow potential suggests management's midterm targets are achievable, questions over their ambition remain, RBC Capital Markets analysts Manjari Dhar and Richard Chamberlain say. RBC questions whether the online grocer will be able to compete effectively with alternatives such as manual in-store pick ups. Before Thursday's release investors paid a premium for its stock relative to its future sales, the analysts say in a note. The analysts say they feel it is overvalued as they are skeptical Ocado will hit its medium-term technology goals, and doubt it will land any more massive, game-changing supermarket partnerships anytime soon. "We think capacity is likely to remain ahead of demand in the near term, which pressures profitability," RBC says. Shares are down 15% at 151.90 pence. (anthony.orunagoriainoff@dowjones.com)
0855 GMT - Japanese equities present buying opportunities amid ongoing reforms and attractive valuations that have lagged an artificial-intelligence-fueled rally, MetLife Investment Management says in a report. Market changes, such as the Tokyo Stock Exchange's corporate-governance measures, continue to strengthen the long-term investment case for Japanese equities by encouraging greater capital efficiency, MetLife says. While higher oil prices could create near-term volatility, earnings momentum could resume once commodity markets stabilize. MetLife notes market gains have been concentrated in a select few AI-related names, some of which now trade at higher valuations. It sees opportunities in AI-rally laggards with solid fundamentals citing their reasonable valuations. (megan.cheah@wsj.com)
0849 GMT - Puig should continue outperforming the premium beauty market, AlphaValue analyst Jie Zhang writes in a note. This is supported by the Barcelona-based company's leading position in niche fragrances, strong innovation pipeline and disciplined expansion in Asia, Zhang adds. But she says fragrances, which account for the bulk of the group's sales, will enter a phase of gradual normalization following several years of post-pandemic growth. Puig also faces increasing competition and heavier promotional activity from rivals, particularly in Latin America, potentially moderating the growth trajectory of its core fragrance business, the analyst says. "Despite this more normalized outlook, we remain positive on the stock," Zhang says. (andrea.figueras@wsj.com)
0832 GMT - Hong Kong shares ended higher, led by technology stocks. The Hang Seng Index gained 1.3% and the Hang Seng Tech Index added 2.0%. Among major stocks, Alibaba Group gained 3.1%, Baidu added 2.6% and Meituan rose 4.6%. "I see today's move in Hong Kong internet stocks less as a reaction to any fundamental change and more as a result of funds rotating out of AI hardware names," says Ivan Su, an analyst at Morningstar. The earlier selloff in Hang Seng Tech was largely driven by fund rotation and sentiment too, he adds. "What we're seeing now is simply an unwinding of those trades," Su says. (tracy.qu@wsj.com)
0828 GMT - Richemont delivered an outstanding quarterly update despite an uncertain economic and geopolitical backdrop, AlphaValue's Jie Zhang says. The owner of Cartier and other high-end brands reported sales for its fiscal first quarter that surpassed the highest end of market expectations, driven by exceptional momentum in its core jewelry division, the analyst writes in a research note. "Jewelry continues to prove the most resilient category in luxury," Zhang says. "That said, following the strong share price performance in recent months, the valuation now appears considerably fuller, limiting further upside despite the group's outstanding fundamentals." (andrea.figueras@wsj.com)
0811 GMT - Sodexo's update provides the market with better visibility, but significant uncertainties seem to remain, Bernstein analyst Sabrina Blanc says. The French food-services company presented details of CEO Thierry Delaporte's four-year strategy for the group. It aims for organic growth in excess of 5% and an operating margin above 5% by fiscal year 2030. Despite fiscal years 2026 and 2027 being presented as a margin floor, there is still only limited visibility on the group's ability to restore its profitability, Blanc says. Due to this, coupled with sustained weakness in its client retention rate and net new business, Bernstein remains fairly cautious on the stock. Shares are up 0.3%. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
July 16, 2026 06:18 ET (10:18 GMT)
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