1410 ET - The recent drop in oil prices will likely provide a boost that hasn't been accounted for in apparel and footwear companies' forecasts, according to Baird in a note. Analysts Jonathan Komp and Alexander Conway say that considering WTI crude was about $95-$110/barrel in late April/early May, they think current prices are well below the levels embedded in most guides. They believe such sizable declines typically boost consumer confidence. This should support upside for apparel and footwear stocks, especially given those companies have pointed to resilient and healthy consumer demand lately as well as solid full-price selling trends, the analysts say. "We see potential for higher consumer sentiment and group valuations ahead," they say, noting particularly good setups for Dick's Sporting Goods, Crocs and Adidas. ([email protected])
1330 ET - Quantum computing provider Quantinuum stands to benefit as quantum computing adoption grows, Mizuho says in a note, initiating coverage with a $90 price target and an outperform rating. Analyst Vijay Rakesh estimates the quantum computing industry to grow from about a $1.1 billion a year run-rate in 2025 to approximately $15 billion in 2030 and $205 billion in 2035. Rakesh expects Quantinuum's 2031 revenue to be about $4.7 billion, growing at a near 131% CAGR from 2025-2031. ([email protected])
1229 ET - Quantinuum is well-positioned to capture the long-term opportunities of quantum computing, but risks and uncertainties remain around the technology, Morgan Stanley analysts write in a note, initiating coverage with an equal-weight rating and a $78 price target. "While we see substantial long-term optionality if quantum computing reaches broad commercial adoption, we believe the current valuation appropriately reflects both the opportunity and the considerable risks that remain," they write. The company's trapped-ion architecture and technical execution has been validated by third parties and suggests a "credible path to fault tolerance," they write, referring to the ability of quantum computers to avoid or correct for errors that emerge through the computing process. Quantinuum shares fall 2.6%. ([email protected])
1222 ET - Uncertainty about the future of the U.S.-Mexico-Canada trade pact will continue to cast a pall over the Canadian economy and lead to slower-than-anticipated growth in 2026, Capital Economics says. Trade uncertainty and lower immigration intake is expected to slow growth this year to 0.5%, CapEcon says. The firm projectsgrowth to pick up steam over the next year although cautioning USMCA uncertainty remains a major wildcard. U.S. withdrawal from USMCA looks unlikely given advanced talks with Mexico. "But there is still a risk that talks drag on" for longer than a year, the firm says. That could further delay a rebound in business investment, and a boost to exports following some tariff relief, CapEcon says. ([email protected]; @paulvieira)
1219 ET - Martin Marietta Materials' acquisition of limestone supplier Lhoist North America may seem like a departure from the company's aggregates business, but it makes sense given commercial and operational similarities between that and the lime business, Raymond James analysts write in a note. "The lime market requires hard- to-replicate high-calcium (geologically different) limestone reserves, is a quarry-based blasting and crushing operation, enjoys a highly consolidated market structure, and is incredibly high necessity (and low value) to the markets it serves," they write, adding that the company's estimate of $85 million in annual cost synergies could be conservative. "We believe that market will come to appreciate the quality of the assets in time." Shares in Martin Marietta fall 6.5%. ([email protected])
1212 ET - The U.S. Supreme Court's ruling blocking President Trump from firing Fed governor Cook "offers some comfort with respect to Fed independence," Ameriprise's Russell Price says. The court rules that the president can fire officials at independent agencies at will, except for central bankers. The decision "is a win for market sentiment," Price says. He warns, however, that the issue of Fed independence is "likely to remain a simmering background concern until proven otherwise." Treasury yields are little changed since the Supreme Court announcement, with the 10-year trading at 4.378%.([email protected]; @ptrevisani)
1207 ET - Comcast will separate its media and connectivity businesses, dismantling an earlier bet on combined entertainment and distribution. The split comes as both the media and telecom landscapes have become increasingly competitive, says Mike Cavanagh, who is currently Comcast's co-chief executive and will lead NCBUniversal as a standalone company. "That pace of change continues to accelerate, and so, we simply don't see these conditions changing anytime soon," he says. Where we previously believed that scale and the diversification benefits warranted operating these businesses as one company, we've now simply changed our mind about that." ([email protected])
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. ([email protected]; @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." ([email protected])
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. ([email protected])
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. ([email protected])
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. ([email protected])