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

1140 GMT - U.K. domestic inflationary pressures look less threatening than the headline inflation indicates, Morgan Stanley economists say in a note. The latest data shows U.K. annual services inflation slowed to 3.4% in July, from 3.6% in June, although headline inflation rose to 2.9% in July from 2.6% in June. U.K. private-sector wage growth is subdued, underlying services inflation continues to ease, "while competitive retail conditions are limiting food-price pass-through", the economists say. A sustained energy shock could raise indirect and second-round inflation risks, they say. Nonetheless, weaker wage growth and subdued services inflation could absorb much of the first-round pressure, the economists say.(miriam.mukuru@wsj.com)

1127 GMT - Novonesis results show the group is pulling away from its peers, JPMorgan analysts write. The Danish producer of biological products like enzymes and probiotics notched organic sales growth of 9% on-year in the second quarter, topping analysts' expectations. The group also raised its outlook for 2026 sales growth. The results demonstrate "broad-based strength across" Novonesis, and the group's increasing competitive advantage, JPMorgan analysts write in a note to clients. "This beat-and-raise reaffirms Novonesis' unique and differentiated growth franchise." As a result, the company's faltering share price over the last year--down 1.9% for the last 12 months--looks hard to justify, they say. Shares jump close to 11%. (josephmichael.stonor@wsj.com)

1120 GMT - Walmart's U.S. sales totaled $125.2 billion during the recent quarter, up 3.5% from last year. Comparable sales--those from store and digital channels operating for the last 12 months--rose 2.6% stripping out volatile fuel sales, consisting of a 1.5% increase in transactions and a 1.1% increase in average ticket. The retailer says its sales reflect strong momentum in e-commerce and broad-based share gains, which were partially offset by pharmacy deflation. Membership fee revenue grew double-digits, as Walmart+ net adds reflected a record second-quarter high, the company adds. Shares are off 6.4% premarket as its FY outlook underwhelms. (connor.hart@wsj.com)

1114 GMT - Walmart lifts its outlook for the year as it posts higher sales in its fiscal second quarter, ended July 31. The retailer now expects net sales to increase 4% to 5% for the year, compared with a prior forecast of up 3.5% to 4.5%. The company also boosts its adjusted per-share earnings outlook to $2.80 to $2.87 a share, from $2.75 to $2.85 a share. Despite the raises, the guidance is slightly behind Wall Street estimates. Analysts polled by FactSet are looking for adjusted earnings of $2.90 a share on sales of $752.06 billion, equivalent to a 5.5% increase from last year. Capital expenditures are now expected to total approximately 4% of net sales, up from a prior forecast of roughly 3.5% of net sales. Shares fall 5.6% premarket. (connor.hart@wsj.com)

1104 GMT - Daimler Truck's investment case increasingly hinges on investors' belief that management can improve the Mercedes-Benz margin and achieve its 2030 targets of an 8%-12% margin, Bernstein analysts write. The Mercedes-Benz business has been losing share across key European markets, which Bernstein views as symptomatic of weaker product competitiveness and brand perception. The Mercedes-Benz trucks segment faces increased competition in 2027, while structural factors weigh on profitability, including greater exposure to lower-margin Western European markets. German headcount reduction targets don't appear to be materializing, while a production shift to low-cost countries is unlikely to accelerate until 2030. The bank lifts its stock-price target to 39 euros from 37 euros and keeps its underperform rating. Shares rise 0.6% to 45.49 euros. (dominic.chopping@wsj.com)

1100 GMT - Munich Re is paying a generous price for U.S.-based cyber insurance company At-Bay and investors have mixed feelings about the deal, Jefferies' Philip Kett and Derald Goh write. The German reinsurance company said Wednesday that it was buying At-Bay for $575 million. The company diversifying makes sense, Jefferies says, but notes contrary feedback from investors. "Some investors are of the view that management ought to return more capital via the buyback to help achieve the [earnings per share] target, instead of over-paying for M&A," Jefferies writes. The At-Bay business is loss-making and isn't expected to break-even until 2029-30, the analysts note. The company is also operating in a weakening cyber insurance market, meaning the valuation could appear more generous, the analysts add. Shares are down 1.0%, and are 9.4% lower over the year-to-date. (michael.hennessey@wsj.com)

1055 GMT - Middle East crude exports fell sharply last week, with flows averaging 6 million barrels a day through Aug. 16, down 2.2 million barrels a day from the previous week, according to Morgan Stanley. Tanker traffic through the Strait of Hormuz has weakened further. Outbound energy-vessel transits are averaging just four a day this week, down from six last week, while inbound traffic has held at six. Both remain far below preconflict levels of 25 to 30 vessels a day in each direction. Alternative routes are offering limited relief. Saudi Arabia's Yanbu port crude loadings remain around 2 million barrels a day, with most cargoes moving north through the Sumed pipeline. Flows through Bab el-Mandeb strait are below 1 million barrels a day, though Morgan Stanley says those figures could be revised in the coming days due to so-called "dark transits." (giulia.petroni@wsj.com)

1020 GMT - Standard Life's U.K. pension-risk transfer partnership with a consortium led by CVC Capital Partners and Prudential Financial is highly positive for the British insurer, J.P. Morgan analysts say. The deal doubles Standard Life's capacity in the U.K. PRT market and allows it to compete with the biggest players, the analysts write. The deal means Standard Life won't take all the capital strain or risk, and will also receive further capital-light earnings, JPM notes. As a result, the partnership will be accretive to consensus forecasts. JPM reiterates its overweight recommendation on the stock, with a price target of 1,075 pence. Shares are down 0.2% at 902 pence. (michael.hennessey@wsj.com)

1016 GMT - Pirelli earnings remain broadly in line with consensus and valuation leaves limited near-term upside, J.P.Morgan analysts Jose M Asumendi and Piyush Singla write. The bank retains its neutral rating on the stock. Meanwhile, J.P.Morgan remains overweight on Continental, with resilient tire profitability, a supportive price/mix and improving currency offsetting continuing volume and raw-material headwinds. Pirelli shares rise 0.2%, while Continental shares rise 1.4%. (dominic.chopping@wsj.com)

1008 GMT - Nokian Tyres earnings momentum should improve materially, driven by its manufacturing ramp-up and premium mix shift, J.P.Morgan analysts Jose M Asumendi and Piyush Singla write. However, the bank remains cautious given execution risks around the company's 2029 targets and elevated leverage. It upgrades the stock to neutral from underweight. Shares rise 5.8%. (dominic.chopping@wsj.com)

1001 GMT - Michelin should find support from improving truck replacement demand, structural growth in its polymer-composite solutions unit and demand for premium tires, J.P.Morgan analysts Jose M Asumendi and Piyush Singla write. This will underpin margin recovery. The bank upgrades the stock to overweight from neutral. Shares rise 1.9%. (dominic.chopping@wsj.com)

0922 GMT - Merck KGaA's prescription drugs business is threatened by competition from Immunome and Sandoz, UBS analysts write. The Frankfurt-listed group's rare-cancer treatment Ogsiveo is less effective and convenient than an Immunome drug set for approval April 2027, the analysts note. Moreover, a generic copy of Merck's Erbitux cancer drug produced by Sandoz will hurt long-term revenue significantly more than the market is currently pricing in, they say. However, investors continue to have confidence in Merck's three divisions, and the stock is priced fairly, they say. UBS cuts its rating on the stock from buy to neutral, though it holds its price target at 150 euros. Shares fall 1.8% to 135.80 euros.