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

1409 ET - IBM's steep plunge on Tuesday likely doesn't represent a floor for the stock, Morgan Stanley analysts write in a note. The company's software and infrastructure businesses were hit by customers reprioritizing spending toward hardware and memory - and given that businesses see the memory shortage as a multi-year headwind, those trends may continue through to 2027, analysts write. "We wouldn't be surprised to see shares remain weak near-term given (1) the persistence of the memory headwind, and (2) the broad-based impact this spending shift could have on IBM spend if longer-lasting," the analysts write. IBM is down 1.4% to $213.90. (elias.schisgall@wsj.com)

1314 ET - The issues plaguing IBM's preliminary 2Q results -- falling demand for its enterprise mainframes and customer spending shifting from software to hardware and memory -- may continue into 2027, UBS analysts write. "Although the company did not update its CY26 framework with the June quarter release, given the risk of disruption from shifting capex priorities persisting into H2:26 and CY27, we proactively lower our CY26 and CY27 forecasts," the analysts write. Their revenue growth outlook drops to 3.6% from 5.5% for the rest of this year, and to 2.7% from 3.1% for 2027. They also cut earnings per share estimates through 2027, though they maintain a $236 price target. (elias.schisgall@wsj.com)

1304 ET - Johnson & Johnson's latest quarterly results offer a positive signal for medical device end markets, even though the company reported lower-than-expected growth in its medical device division, Baird analysts say in a note. J&J's medical technology miss was largely due to company-specific issues in its cardiovascular unit, masking reasonably solid performances from surgical, vision and orthopedics, they say. The analysts say the report offers positive read throughs for companies like Zimmer Biomet Holdings and Stryker in orthopedics, and for Medtronic and Abbott Laboratories in cardio and electrophysiology, among others. (kelly.cloonan@wsj.com)

1252 ET - Oppenheimer downgrades IBM to perform and removes its $350 price target following the company's announcement that its software and infrastructure segments missed estimates in 2Q which sent the shares down 25% yesterday. Oppenheimer's analysts were previously bullish on IBM, anticipating a sticky software business and "no surprises" in the second-quarter print. But Tuesday's disappointing preliminary results mean that "the bull thesis will take longer to materialize," analysts write. "We believe it will be difficult for IBM to get 'double-digit' CC growth in software for CY26/27 without additional large acquisitions or a material catch-up in large deals that slipped during 2Q." (elias.schisgall@wsj.com)

1220 ET - Stripe's offer to buy PayPal still leaves questions about whether the payments company will sell itself in whole or try to sell off parts of itself individually, Deutsche Bank analysts say. The analysts previously said they thought a sale of only some of PayPal's assets would be more likely than a sale of the whole company. They say they are somewhat surprised that Stripe is involved in an offer for all of PayPal. However, they note that PayPal hasn't yet responded to Stripe and its partner Advent, suggesting it could see greater values creation in other opportunities, such as selling assets piecemeal. (katherine.hamilton@wsj.com)

1217 ET - Stripe's offer to buy PayPal marks the continuation of consolidation across the payments and financial technology industry, Deutsche Bank analysts say. Several other mergers within the sector have already been announced this year, including deals between Mastercard and the stablecoin firm BVNK, and between Fidelity Information Services and TSYS. A potential sale of PayPal -- to Stripe or someone else -- could be a catalyst for more deal activity in the industry, the analysts say. The reported size of the deal also suggests there is significant interest in PayPal, despite the company's recent challenges and low trading multiple, they say. (katherine.hamilton@wsj.com)

1207 ET - Netflix is contending with a host of investor concerns over engagement, AI-driven content disruption and competition heading into its 2Q earnings report, BofA Securities analysts say in a note. But the streaming company is no stranger to periods of skepticism. After subscriber growth slowed materially in 2022, the company responded with a series of strategic initiatives, including paid sharing and its ad-supported tier, which both helped reaccelerate growth, the analysts say. "While there are a range of potential outcomes for how Netflix's business model evolves from here, the management team has consistently demonstrated an ability to adapt to changing market conditions, execute effectively and create long-term shareholder value," they say. (kelly.cloonan@wsj.com)

1201 ET - Shares of Lucid Group jump 20%, putting the stock on track for its biggest one-day percentage gain in nearly a year, after plunging 16% a day earlier. The rebound follows the company's denial of reports that it was considering a bankruptcy filing or take-private transaction. Morgan Stanley said the rumors appear unfounded but argued Lucid still faces significant financing needs as it prepares to launch its midsize platform. The brokerage estimates the EV maker will burn about $3.7 billion in cash this year and require additional debt and equity financing through 2027, leaving investors focused on execution and the risk of further shareholder dilution. (anvee.bhutani@wsj.com)

1154 ET - JPMorgan's Jamie Dimon says artificial intelligence will be a revolutionary force, but adds that CEOs should still weigh the return on their investments in it as spending on AI infrastructure skyrockets. "We're all going to be rational about it like any other resource we use," Dimon tells CNBC. JPMorgan constantly negotiates with vendors on the value and purpose of potential investments in AI, which is "a normal state of affairs" between vendors and companies, he says. Dimon says he still thinks AI is going to be an "unbelievable thing" that cure cancers, reduces road deaths and hospital deaths, and even invent new composite materials. (dean.seal@wsj.com)

1107 ET - JPMorgan Chase has pooled $18 million in loans and investments along with $6 million in philanthropic grants to help expand a submarine manufacturing and assembly facility in Philadelphia. The financing will also help expand workforce training and apprenticeship opportunities for potentially thousands of local workers, and support up to 100 local maritime small business suppliers, the bank says. CEO Jamie Dimon tells CNBC that financing is part of its focus on defense and infrastructure. "We're doing our part to help protect the future of freedom and the future of America," Dimon says. (dean.seal@wsj.com)

1100 ET - Elevance Health says it is exiting more Medicaid markets. It recently reached an agreement with Washington, D.C., to leave the city's Medicaid market, and expects to exit more Medicaid markets over the next 12 to 18 months where it doesn't see a path to sustainable growth. The exits are part of Elevance's strategy to improve financial discipline and assess each market based on fit, operational requirements and the ability to generate good return on capital. Health insurers have been raising Medicaid rates to offset rising health costs. Elevance said it had fewer members in the most recent quarter, particularly in its Medicaid and Affordable Care Act plans. Shares drop 10%.(katherine.hamilton@wsj.com)

1056 ET - Warren Buffett says he has changed his tune on Google because he sees big opportunities tied to AI. The investor, who has typically stayed away from technology companies, tells CNBC he had a hand in Berkshire Hathaway's $31 billion stake in Google's parent Alphabet. He says he "made a mistake" by not investing in the company sooner, and now thinks it is more likely to be a winner based on its record. He says he doesn't think big tech companies have any other choice right now but to spend heavily on AI to stay competitive. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

July 15, 2026 14:09 ET (18:09 GMT)

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