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

1836 ET - Walmart's membership program, a key component of its digital flywheel, looks poised for growth ahead, Morgan Stanley analysts say in a note. The analysts expect the program to scale to about 55 million members by 2035, more than doubling from roughly 21 million members this year. That should expand Walmart's commerce, marketplace and advertising opportunity, given Walmart+ members spend about four times more and make roughly seven times as many e-commerce visits as non-members, creating more purchase occasions, richer first-party data and an opportunity to capture share of consumers' wallets, the analysts say. Additionally, higher engagement improves fulfillment density, personalization, marketplace conversion, and advertising monetization, they say. "The result is a reinforcing loop: a stronger membership proposition drives frequency, greater frequency improves economics and relevance, and those benefits fund further investment in price, convenience, and the bundle," they say. (kelly.cloonan@wsj.com)

Consumers look poised to hit the stores as they prepare for a return to the classroom, setting up for a strong back-to-school shopping period, Morgan Stanley analysts say in a note. Consumer demand for goods remains resilient, with July retail sales data pointing to solid growth above levels seen in 2022 through 2024, the analysts say, though they expect growth will moderate from last year. Additionally, higher prices likely mean nominal spend will increase year over year across income cohorts, but high-income consumers will likely continue to lead the strength, the analysts say. (kelly.cloonan@wsj.com)

1656 ET - Expand Energy's recently announced $1.25 billion acquisition of natural-gas supplier Twin Eagle from private-equity firm Five Point Infrastructure will increase the publicly traded energy company's access to critical assets without substantial capital outlays, says Gabriele Sorbara, a senior equity analyst at financial-services firm Siebert Williams Shank. Sorbara points to Twin Eagle's contractual rights to use third-party pipelines and storage tanks. "They're not really acquiring many assets from Twin Eagle," he says of Houston-based Expand Energy. "But it has improved their margins." He compares the approach with that of larger natural-gas producers such as EQT Corp., which about two years ago reacquired pipeline operator Equitrans Midstream in a roughly $5.5 billion deal. "Expand is doing it a little bit differently with Twin Eagle," Sorbara adds. "It's really asset-light." (luis.garcia@wsj.com; @lhvgarcia)

1438 ET - OceanaGold's acquisition of western Australia's Ausgold should help supplement production while it develops its Wharekirauponga project in New Zealand. TD Bank's Wayne Lam says that the deal for about $549 million provides OceanaGold with "a medium term growth asset with first gold targeted in 2029, helping to bridge the gap to ongoing development of WKP where first ore is guided in 2032." Lam says the addition also helps offset a potential decline in the production profile at OceanaGold's Macraes operation in New Zealand while preserving balance sheet flexibility to fund ongoing growth initiatives and continued return of capital. OceanaGold is up 3.6% to C$41.18. (adriano.marchese@wsj.com)

1359 ET - Tapestry thinks it can leverage AI to offer products that are more likely to connect with the fashion trends of the moment, UBS analysts say in a note after attending an AI event hosted by the company. Historically, the Coach and Kate Spade parent company has gotten the trends really right in some seasons, and only sort of right in others, the analysts say. Tapestry's management thinks that kind of volatility will likely go down in the future as AI helps it hit the right trends, the analysts say. "In other words, TPR's decision 'batting average' will go higher over time," the analysts say. If those plans pan out, the stock could become more attractive to portfolio managers, who have typically had a high bar for investing in softlines stocks given fashion risk, they say. (kelly.cloonan@wsj.com)

1342 ET - When it comes to Coach-owner Tapestry, investors are focused on the fashion cycle and missing the bigger picture around AI, UBS analysts say in a note after attending an AI event hosted by the company. Tapestry is using AI to leverage consumer insights, data and analytics to make better decisions across the business, the analysts say. The company is also using the technology to optimize the design process, allowing it to reduce mold making time in its footwear business by 90%, and to create a gift assistant chatbot that improves conversion, among other AI efforts, the analysts say. "This event was unique. We are very confident not more than two other companies in our 45 stock coverage universe could even come close to putting on a demonstration like the one we witnessed," the analysts say. (kelly.cloonan@wsj.com)

1246 ET - Corn typically has the highest demand for fertilizers during its growth process, and the supply chain issues seen this year may have affected how much fertilizer farmers have been able to apply to their fields. This may affect corn yields, says AgResource. The firm hosted its own crop tour last week, and now sees the national corn yield at 178 bushels an acre, which would be down 2 bpa from the USDA's August WASDE report. "It appears that due to high cost and unprofitable production margins, farmers trimmed their nitrogen application rate," says the firm. "This was not universal, but the wet spring also caused nitrogen leaching, which was not fully replaced during the growing season by the application of 32%." CBOT corn is up 1.4%. (kirk.maltais@wsj.com)

1212 ET - Alimentation Couche-Tard long-term bet on European growth could land it a good payoff by the end of the decade. National Bank of Canada analyst Vishal Shreedhar says that while the initial takeover of a 57% stake of Polish convenience store operator Zabka will be "largely neutral" to near-term EPS, the deal is projected to be "5.5% accretive by F2030," a payoff that could jump closer to 10% if Couche-Tard eventually buys the convenience store operator outright. Zabka's "high-growth, franchise-led platform and solid margins" should help Couche-Tard "deliver sustained growth via organic drivers, share repurchases and acquisitions. (adriano.marchese@wsj.com)

1151 ET - Indicators have been mixed heading into Walmart's 2Q earnings report, scheduled for Thursday, Davidson analysts say in a research note. They cite point-of-sale data that shows a deceleration from last quarter, coupled with overall retail sales for general merchandise stores showing an acceleration to the highest growth rate in more than three years. "We are looking for another quarter of comps in the low 4% range," the analysts say, noting their forecast is slightly ahead of Wall Street models. Walmart's stock has underperformed to date, they add, citing concerns of slowing comps against a premium multiple. "We think this lowers the bar in front of the 2Q print and makes for an attractive set up," they write. (connor.hart@wsj.com)

1140 ET - Concerns about JetBlue's balance sheet are put on the front burner with the Iran ceasefire ending today, Seaport Research Partners analyst Daniel McKenzie says in a research note. If oil prices surge again from increased hostilities with Iran, JetBlue could be forced to boost debt, putting its balance sheet at risk of becoming too indebted, the analysts say. "Shares could ultimately become worthless," they say. The analysts had upgraded JetBlue shares to a buy rating in April based on the assumption that the Strait of Hormuz would open. Now, they're downgrading the shares to a neutral rating. Shares slide 5.7% to $5.33. (dean.seal@wsj.com)

1133 ET - L3Harris Technologies having Sam Mehta replace Chris Kubasik as CEO could be a catalyst for the company closing its performance gap against rival defense contractors, Vertical Research Partners analysts Robert Stallard and Karl Oehlschlaeger say in a research note. Kubasik's ouster is tied to a violation of the company's code of conduct, and investors probably don't think it will affect the underlying business, the analysts say. But it isn't going unnoticed that L3Harris lagged its U.S. defense peers under Kubasik's leadership, they say. The analysts have a high regard for Sam Mehta, the president of L3Harris' space and mission systems. They say he has been an effective manager and a good communicator. (dean.seal@wsj.com)

1127 ET - Chris Kubasik is out as CEO of L3Harris Technologies, a departure that likely has investors thinking back to his ouster from defense rival Lockheed Martin in 2012, Vertical Research Partners analysts Robert Stallard and Karl Oehlschlaeger say in a research note. L3Harris says Kubasik, also its chairman, was found to have violated the defense contractor's code of conduct. Kubasik was set to take the CEO role at Lockheed in 2012 before he was ousted for a "lengthy, close personal relationship" with a subordinate. Whatever drove this more recent departure, investors will likely conclude that the management change won't impact the underlying business, the analysts say.