The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1341 ET - Investments in AI and cloud will drive global IT spending growth to 9% this year, S&P Global Ratings says in a report. "Alphabet, Meta, Microsoft, and Amazon are significantly increasing capital expenditure despite emerging AI efficiency gains," S&P says, adding the robust spending plans come amid DeepSeek's recent efficiency breakthroughs. The agency also says the semiconductor industry is sharply divided, "with AI-driven demand surging while traditional markets such as PCs, automotive, and industrial segment face headwinds." In the face of possible tariffs, customers have been accelerating hardware purchases, S&P adds. (stephen.nakrosis@wsj.com)

1334 ET - UBS expects Wayfair's value proposition to shine given recent investments and continued efforts to right-size cost structure. The analysts say in a research note that the moves could drive "a powerful P&L inflection ahead." As for the impact of higher tariffs on Chinese goods, the analysts say the company is in a better position than other traditional home furnishings players. UBS estimates 50% to 60% Wayfair's sales are sourced from China. Since it has a marketplace model, the analysts say Wayfair should be able to pass along any incremental costs from tariffs to the consumer through higher retail prices. They also point out that Wayfair's large vendor base of over 20,000 suppliers would allow it to shift its source of supply to other companies outside of China. Wayfair rises 3.1%. (sabela.ojea@wsj.com; @sabelaojeaguix)

1307 ET - Deere left its FY25 profit guidance unchanged at $5 billion to $5.5 billion, but that now includes a significant 300 basis point reduction to the company's full-year tax rate, Raymond James analyst Tim Thein says in a research note. The reduction stems largely from favorable items in F1Q, the analyst says. Deere reported earnings of $869 million for F1Q, down 50% year-over-year, that includes $163 million of discrete tax benefits related to special items. "Therefore, when netted against the negative currency impacts and other quarterly items, our full year net income forecast remains unchanged," Deere's Josh Beal says on a call with analysts. (dean.seal@wsj.com)

1252 ET - Crocs has looked at tariffs and run the numbers. The clog and sandal company's guidance for 1Q and 2025 embeds an additional 10% tariff on goods imported from China as well as the anticipated additional 25% tariff on goods imported from Mexico beginning in March, says CFO Susan Healy on an earnings call. She notes that the company doesn't have any production in Canada. "In 2025, we expect the share of enterprise imports into the US from China to be approximately 15%, with Crocs at 10% and Heydude at 27%," says Healy, referring to specific brands. "Our exposure to Mexico is expected to be under 4% and for the Crocs brand only." Crocs surges 19% as 4Q results beat estimates. (denny.jacob@wsj.com; @pennedbyden)

1250 ET - Similarities are emerging between Cisco Systems and International Business Machines. IBM was unloved by investors until it started hitting numbers, buying software and posting growth, which has prompted a surge in stock price, Melius Research analysts say in a note. Cisco was similarly overlooked by Wall Street, but the networking-equipment company has struck a better tone in recent quarters, with orders trending upwards and solid gross margins. Now, orders are ramping, and the company's artificial-intelligence strategy is making real progress, analysts say. Shares rise 2.2%, one day after Cisco boosted its revenue outlook for the year, prompted by stronger-than-expected sales in its fiscal 2Q. (connor.hart@wsj.com)

1232 ET - Though it's early in the year, 2025 is showing signs of improvement for the bottom lines of U.S. farmers, says Deere on its F1Q earnings call. Officials say that they're seeing pricing pressures that farmers grappled with last year easing, which may provide a new spark for Deere sales. "On the input side, farmers are continuing to see a decline in input costs for the third consecutive year," says Deere's Josh Beal during the call, adding that government assistance coming from the American Relief Act of 2025 will also support farmers. "This assistance will offset some of the margin decline farmers saw in 2024, while potentially helping to relieve concerns around macro risk and high interest rates." (kirk.maltais@wsj.com)

1228 ET - Eversource Energy's 4Q results and earnings call were encouraging, Siebert Williams Shank analysts say in a research note. The energy company could have higher 2026-2027 EPS growth, as well as over the next five years, given improved cash flows and interest expense savings, the analysts say. Still, earnings call participants appeared disappointed by the temporary lull in 2025 EPS growth and remained more focus on that more modest near-term growth. Siebert Williams Shank cuts its target price to $85 a share from $87 a share previously. Shares rise 5.4% to $62.95. (sabela.ojea@wsj.com; @sabelaojeaguix)

1220 ET - Base metal prices are mixed, with LME three-month copper up 0.1% at $9,481.0 a metric ton and LME three-month aluminum down 0.9% at $2,602 a ton. Copper made some gains to sit 2.4% higher on week, while aluminum has slipped 0.7%. Trading volumes have been relatively thin ahead of expectations of the next round of President Trump's so-called reciprocal tariffs. On Monday, Trump imposed 25% tariffs on all aluminum and steel imports, in addition to previously announced 10% levies on Chinese imports and delayed 25% tariffs on Mexican and Canadian goods. The effect so far on LME prices has been relatively muted, though U.S. premiums have risen to accommodate expectations of higher prices. Trump plans reciprocal tariffs targeting any country that has imposed U.S. levies, promising to sign the order later Thursday. (joseph.hoppe@wsj.com)

1211 ET - AppLovin's fourth-quarter advertising revenue came in well above the expectations of the vast majority of investors polled by BofA Securities analysts. The mobile-advertising-technology company's AI-engine push has shown efficacy with e-commerce categories such as fintech, insurance, healthcare and automotive, which surprised the analysts as well. "The additional demand density from e-commerce appears to have driven the take rate to new highs," the analysts add, noting that they assume a rapid succession of model enhancements in AppLovin's e-commerce model independent of gaming ads. BofA Securities raises its target price to $580 from $375 a share previously on the company's improved outlook. Shares jump 28%, to $487.21, a share. (sabela.ojea@wsj.com; @sabelaojeaguix)

1158 ET - There were three running threads during airlines' most recent reporting season, UBS analysts say in a research note. For starters, strong demand accelerated throughout the fourth quarter, fueled by leisure and corporate travelers. This trend has been sticking around so far in the first quarter, the analysts note. Additionally, international flights drove revenue, more so than domestic, they say. Finally, cost pressures remain at large, as evidenced by most airlines' costs per available seat mile outweighing revenues per available seat mile, according to analysts. The quarter was overall strong, but the industry remains one of the haves and the have-nots, analysts say, noting their top picks of Alaska Air Group, United Airlines Holdings and Delta Air Lines. (connor.hart@wsj.com)

1135 ET - MGM Resorts International's outlook on growth for its Las Vegas Strip Resorts unit this year is catching investors' and analysts' attention as shares of the hotel and casino operator reach their largest percent increase since November 2020. The company is targeting growth in Vegas despite the tough Super Bowl comparatives of the first quarter of 2024, UBS and Truist Securities analysts say in separate research notes. MGM says it identified $200M of incremental Ebitda opportunities: 35% of those from revenue initiatives and 65% from cost reduction initiatives, with $150M to be achieved in 2025. Overall, the company is the best performer in the S&P 500 today, according to FactSet. Shares rise 14%, to $39.16. (sabela.ojea@wsj.com; @sabelaojeaguix)

1134 ET -- Tariffs won't be a problem for Corsair Gaming, executives say on a call with analysts. The gaming technology company moved the production of most of its U.S.-bound products out of China five years ago during President Trump's first round of tariffs, at which time the company also "planned further actions in case more or expanded tariffs were announced," CFO Michael Potter says. It doesn't have any factory locations in Canada or Mexico. Corsair guides for better-than-expected revenue in 2025, including the effect of tariffs. "Depending on the news coming up next, that might change the picture," COO Thi La says, "but at the moment, we feel pretty good about our supply chain." Shares rise 17%. (connor.hart@wsj.com)

(END) Dow Jones Newswires

February 13, 2025 13:41 ET (18:41 GMT)

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