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

1022 ET - SpaceX's artificial-intelligence ambitions are coming into sharper focus, and JPMorgan analysts they feel increasingly bullish on Grok. SpaceX recently earlier this month closed its acquisition of Cursor, a move the analysts say in a research note marks an important step in building out its enterprise AI capabilities. "Importantly, we have already seen the benefits of Cursor data incorporated into Grok's supplemental training, with tangible improvements in recent model performance," they write. Looking ahead, Grok 5--expected by December--should represent a substantial step up in scale and capacity. "While near-term AI revenue is largely driven by premium compute deals, we expect improving Grok monetization, particularly among enterprises, to become an increasingly important driver over time," the analysts say. (connor.hart@wsj.com)

1005 ET - Dick's Sporting Goods says Foot Locker is facing more challenges than originally anticipated in Europe, the Middle East and Africa. Markets there are more competitive with more promotions than in the U.S., executives tell analysts on a call. Consumers in those regions are also more cautious, contributing to excess inventory and margin pressure, they say. The executives didn't give specifics about how much of a margin impact the region is having compared with the U.S., but emphasized that the challenges were a contributing factor in cutting Foot Locker's annual same-store sales guidance. Dick's Sporting Goods plunges 24%. (katherine.hamilton@wsj.com)

1005 ET - Target issues an apology and says it has stopped selling a children's Halloween costume after receiving widespread criticism over the design. The product--sold as the "Kids' Glows Under ‌Blacklight Circus Clown Halloween Costume"--featured an orange-and-black clown outfit, black gloves and a dark face covering with an exaggerated smiling mouth. Critics said the features, in addition to a promotional image that appeared to show a Black child modeling the costume, closely resembled racist caricatures historically associated with blackface and minstrel performances. "As a company, we know we got this wrong, and we are deeply sorry," Target says. "The costume is offensive and should never have been part of our assortment," the retailer's statement continues, adding: "We know this is especially hurtful for our Black guests, team members and partners." Target shares fall 4.5%. (connor.hart@wsj.com)

0953 ET - Bank of Nova Scotia's adjusted EPS beat was driven by strength in its capital markets unit, according to TD Cowen's Mario Mendonca. The analyst views the F3Q earnings as positive for near-term momentum. All bank net interest margin came in lower as international banking's NIM dropped 7 basis points quarter-over-quarter. "While IB loan growth remains soft (non-retail) overall balance sheet growth was better than expected," Mendonca says. (adriano.marchese@wsj.com)

0848 ET - Companies are increasingly mentioning extreme weather and climate strategies in earnings calls, says Sara Mahaffy, RBC Capital Markets' head of global sustainability strategy research. Mentions of extreme weather and climate adaptation strategies reached new highs in Europe's second-quarter reporting season, the analyst says in a research note. RBC notes that insurers, including Hannover Re, highlighted rising risks from climate change and geopolitical uncertainty. Generali sees the protection gap--the difference between total economic losses and insured losses--from increased extreme weather as a major long-term trend, RBC says. "While these topics have typically been most in focus for utilities, insurance, industrials, and materials sectors, we are also starting to see a pickup in mentions among consumer and health care sectors in certain regions as impacts are increasingly felt," Mahaffy says. (michael.hennessey@wsj.com)

0847 ET - Foot Locker is causing problems for Dick's Sporting Goods. The shoe retailer is now expected to log flat to lower same-store sales during the full year, as demand for both legacy and newly-launched footwear took a hit in 2Q. Dick's core business is more diversified, but Foot Locker's high exposure to the shoe industry weighed on overall performance and prompted the company to cut prices in order to stay competitive, executives tell analysts on a call. "These marketplace dynamics [have] delayed the pace of improvement that we expected to see in the Foot Locker business," Executive Chair Edward Stack says. Dick's Sporting Goods nosedives 18% premarket. (katherine.hamilton@wsj.com)

0833 ET - Novo Nordisk's sales growth could be flat this year, J.P. Morgan says. The Danish drugmaker recently raised its guidance and now forecasts sales growth ranging from flat to minus 6%. The bank raises its 2026 sales forecasts by 5%, largely due to higher forecasts for diabetes and weight-loss drugs Ozempic and Wegovy, partially offset by slowing launch momentum of oral Wegovy in the U.S. Novo Nordisk's top-line could still see modest 1% growth in 2027, JPM says. The bank expects 2% sales growth in 2028, with any further acceleration largely dependent on the successful development of zenagamtide, particularly in the oral format, which could have the highest weight loss of any of the oral drugs. JPM retains its neutral rating for the stock and lifts its price target to 275 Danish kroner from 250 kroner. Shares rise 2.2% to 305.80 kroner. (dominic.chopping@wsj.com)

0810 ET - Dick's Sporting Goods received $59 million in tariff refunds and $2.1 million in related interest income, the company says. Some retailers, including Walmart, have said they plan to use tariff refunds to temporarily lower prices for consumers, as low-income shoppers are feeling squeezed by high gas costs. This comes as Dick's flagged weakness in athletic apparel and footwear demand. Dick's recorded the refunds as a reduction to the cost of goods sold. The company says it has now received substantially all the tariff refunds and doesn't have any material additional refunds claims outstanding. Dick's Sporting Goods plunges 17% premarket. (katherine.hamilton@wsj.com)

0805 ET - U.S. life insurance companies could face more pressure relative to their eurozone peers as regulators and investors increasingly scrutinize the firms' exposure to the private credit industry, TwentyFour Asset Management's Jakub Lichwa says in a note. U.S. life insurers have relatively larger investments in the private credit sector than their eurozone peers, making some U.S. insurers more vulnerable, he says. "We see European life insurers as more insulated from this year's developments in the U.S., supported by the regulatory and fundamental picture in Europe." (miriam.mukuru@wsj.com)

0803 ET - Bank of Montreal handily beat adjusted earnings expectations in F3Q thanks to strong performances in equity trading and wealth management. TD Cowen analyst Mario Mendonca says in a report that BMO's adjusted EPS of C$3.96 topped his estimate of C$3.73 and the Wall Street consensus of C$3.77. All segments reported growth, Mendonca says, while the bank also had lower-than expected credit loss provisions of C$722 million versus TD's estimate of C$755 million. Strong equity trading volumes helped prop up the capital markets and wealth management units, Mendonca says.(adriano.marchese@wsj.com)

0610 ET - Carlsberg shares remain attractively valued and Berenberg believes the brewer has the potential to consistently deliver high-single-digit earnings growth over the coming years. First-half results were in line on revenue growth and ahead on organic operating profit growth, while full-year guidance was narrowed toward the upper end. Soft drinks were the standout, but China lagged. Management doesn't expect China's weak beer market to improve as bad weather continued into the third quarter and distributors are carrying excess inventory. The bank notes Carlsberg has adopted IFRS 18 accounting standards, while introducing Carlsberg Performance Measures, which are metrics intended to show organic performance as defined by management. The bank increases its 2026 and 2027 earnings forecasts by 3.7% and 2.5% respectively. Shares fall 0.3%. (dominic.chopping@wsj.com)

0601 ET - Investors are increasingly moving funds away from U.S. equities and into private markets as they seek to diversify beyond the U.S. stock market, Wealth Club's Susannah Streeter says in a note. Long-term investors are reducing their exposure to U.S. stocks due to concerns about possible overvaluation in the tech industry, Streeter says. Investors are also seeking opportunities "away from the daily noise of public markets."