1204 ET - Long-term Treasury yields are likely to fall in the near future, while the front end of the curve remains elevated, Bank of America's Meghan Swiber and Eleanor Xiao write. They say investors who had bet on a back-end selloff, which would take long-term yields higher, are losing money. That makes them prone to unwind their short positions, which would increase demand for long-term bonds and weigh on yields. "Foreign demand stays soft, reinforcing a split demand backdrop," Swiber and Xiao say. They see "a tactical tension but not a strategic shift," and stay short two-year Treasurys. (paulo.trevisani@wsj.com; @ptrevisani)
1158 ET - Comcast considered three main questions when discussing the separation of its media and connectivity businesses: Can the businesses stand alone? Do they have a clear and viable capital allocation path to invest? And is now the right time? "The answer we came back with was yes to all accounts," CEO Brian Roberts says on a call with analysts. That's in large part because both companies have the right assets in place to succeed and scale as standalone companies, he says. "We really believe that we're set up for that to happen," Roberts says. "Our philosophy has always been to invest for growth. And we've done that over many years, and it's really strengthened these businesses and created tremendous value." (connor.hart@wsj.com)
1154 ET - Comcast began as a community antenna business, and it has since evolved into a technology company specializing in broadband, business services, wireless and advanced connectivity solutions, CEO Brian Roberts says on a call with analysts. "The demand for connectivity has never been greater, and the role our networks play in people's lives, businesses and the broader economy continues to expand," he says. "As a stand-alone company, Comcast will be singularly focused on capitalizing on those priorities." Roberts says that Comcast's advanced network, rapidly growing mobile business, expanding business services franchise and customer relationships help enable it to adapt through periods of technological change. (connor.hart@wsj.com)
1148 ET - Truist Securities analysts are increasingly fielding questions about the possibility of space-based data centers, likely stemming from SpaceX's recent stock market debut, they say. The analysts expect the concept could become a feasible option toward the middle or later part of the next decade, but say they don't see it as a tangible threat to data center companies like Equinix and Digital Realty Trust given how strong demand is. "The sheer concept of evaluating space-based data centers supports our view that favorable supply/demand dynamics benefiting terrestrial Data Center platforms persist for the foreseeable future," they say. Additionally, space-based data centers could be complementary to land-based data centers, rather than a replacement, given they could take on more power-intense training and in-orbit-generated data, they say. (kelly.cloonan@wsj.com)
1142 ET - The race to power AI data centers may create one of the last major pockets of equipment demand still open this decade. BNP Paribas says behind-the-meter gas generation is emerging as a key solution as electricity demand outpaces grid expansion, with gas reciprocating engines positioned to benefit. The firm estimates about 50 gigawatts of U.S. demand for the technology through 2032 and says roughly half is already visible in project pipelines, supporting strong order growth. BNP initiated coverage of INNIO with an outperform rating, arguing the company is well positioned to capitalize on the trend thanks to its market share, premium products and growing service business. (anvee.bhutani@wsj.com)
1129 ET - Life Time Group Holdings is nearing an inflection point where it will be able to fund its new club openings through free cash flow, rather than continuing to rely on selling and leasing back its real estate, Jefferies analysts say in a note. "The bear case that LTH 'needs' sale-leasebacks to generate cash flow is on its last legs," the analysts say. With that inflection expected in 2030, as well as a widening competitive moat, strong member productivity, expanding margins and a visible long-term growth runway, the analysts say the stock deserves a higher multiple. They raise their price target on the stock to $51 from $41. Shares fall 0.9% to $40.64. (kelly.cloonan@wsj.com)
1123 ET - Comcast CEO Brian Roberts says the industry looked very different when it bought NBCUniversal more than 15 years ago. "At that time, the cable networks were widely viewed as the center of value creation and represented a strong strategic fit with our existing business," he says on a call with analysts. "At the same time, we saw the potential of a broader media and entertainment platform and invested accordingly." Those investments helped position NBCUniversal as a leader in many of the areas driving growth today, including studios, theme parks and sports, Roberts continued. "As an independent company, NBCUniversal will have even greater flexibility to invest behind its strongest opportunities, expand partnerships and compete with greater agility in a rapidly changing media landscape," he says. (connor.hart@wsj.com)
1120 ET - Bitcoin is back below $60,000 as investors guess what data coming soon will mean for the economy and appetite for risk-on assets like bitcoin and other cryptocurrencies. "For the week ahead the focus will be on whether the data justifies Warsh's hawkish posture, particularly the jobs report on Thursday and the ISM Manufacturing survey on Wednesday," says Stephen Coltman of 21shares in a note. Focus is also being put on the activities of bitcoin treasury firm Strategy, with company head Michael Saylor expected to do an interview this week that may disclose the company's next steps - including if it plans on selling any more of its huge bitcoin stockpiles to fund operations. (kirk.maltais@wsj.com)
1119 ET - Comcast CEO Brian Roberts says the company's decision to separate its media and connectivity businesses reflects its willingness to look ahead, embrace change and position itself for the future. "The world is changing faster than ever. Technology, consumer behavior, competition, capital requirements are all evolving at an unprecedented pace," he says on a call with analysts. "As we look ahead, it has become clear that our technology and media businesses each have compelling opportunities in front of them that are distinct in nature and best pursued with dedicated focus, strategic flexibility and tailored investment priorities." Comcast rises 7%. (connor.hart@wsj.com)
1113 ET - Warner Bros. Discovery's 'Supergirl' raked in $38 million in its U.S. opening weekend, disappointing already muted expectations, Benchmark analyst Matthew Harrigan says in a note. The film would need to gross about $450 million to $500 million globally to breakeven, though now it looks like its final box office run could actually fall below $200 million, the analyst says, noting weak ratings on CinemaScore and Rotten Tomatoes. "This suggests a potential $150M loss on the release," Harrigan says. Harrigan attributes some of the film's disappointing box office performance to the casting of Australian actress Milly Alcock, which garnered negative reactions among some fans, he says. "Superhero movies are notoriously sensitive to bad casting decisions, especially for female lead films that have often empirically been more difficult to market," he said. (kelly.cloonan@wsj.com)
1107 ET - Comcast's decision to separate its media and connectivity businesses is boosting shares 8%. That gain, Benchmark says in a research note, only modestly reflects the eventual potential value for the standalone companies. "The split is especially desirable in assigning fairer immediate value studio to the Studio and Parks businesses," analyst Matthew Harrigan says. He notes that both companies will build and invest for organic growth. "In the interim, improved connectivity results remain determinative for improving stock performance despite studio, sports and Peacock momentum at NBCU." (connor.hart@wsj.com)
1052 ET - Robinhood Markets' prediction markets business is gaining momentum with volumes accelerating over the past week, putting the metric on track to land nearly 40% ahead of analysts' estimate for the second quarter, Truist Securities analysts say in a note. Prediction revenue could see even greater upside than just applying Wall Street's take rate to the volume upside given the World Cup is likely driving considerable volume, the analysts say. Such contracts are tradable on Robinhood's own Rothera exchange, where it does not share revenue with third-party exchanges, they say. All in, Robinhood is on pace for its best trading month ever in June for equities, options and prediction markets, making for a "hat trick, unassisted by crypto," they say. (kelly.cloonan@wsj.com)