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

0954 ET - Descartes Systems is turning AI from an investor question mark to a key growth engine. TD Cowen's John Shao says the logistics software company has "made meaningful progress in productizing AI," where its "strategy and readiness... could have a more significant and potentially strategic impact on the company's long-term growth and profitability." The analyst says that this is a leap from where the company was a year ago, when the company would respond to investor concerns over AI. Now, Shao says management is proactive with its strategy, with a "tangible roadmap spanning AI infrastructure, connectivity, product design, and specific use cases across the company's major business lines." (adriano.marchese@wsj.com)

0941 ET - Kroger says shoppers are prioritizing higher-quality food, despite pressures on their budgets. Engagement has been strong with Kroger's natural and organic products, executives say on a call with analysts. The company added more than 600 new natural and organic items to meet this growing demand, they say. The trend comes as customers are putting fewer items in their baskets and grocery unit growth has slowed down. Executives say consumers are feeling pressured by higher gas prices and other economic conditions that are limiting their grocery budgets.(katherine.hamilton@wsj.com)

0907 ET - Kroger says the cyclospora outbreak took a bite out of its sales in the second quarter, executives say on a call with analysts. The outbreak, which affected fresh produce, cost the grocery chain roughly 0.35 percentage points of total same-store sales growth, executives say. Same-store sales in the quarter increased 0.2%, missing Wall Street's estimate of 0.8%. The metric was also dinged by egg deflation, as egg prices have fallen from their peaks last year when there was a shortage. Kroger shares decline 2.2% premarket. (katherine.hamilton@wsj.com)

0839 ET - Reckitt and Unilever are more exposed to higher oil prices than other consumer goods companies, analysts at Morgan Stanley say in a note as Brent crude remains above the $100 mark. The substantial home-care businesses of Reckitt and Unilever and sensitivity to oil-linked raw materials leave them more exposed than other companies, they add.Beyond pricing, Reckitt has highlighted improvements to its supply chain and says it is manageable, the analysts add. Reckitt shares are up 0.1%, Unilever shares are up 0.5%. (aimee.look@wsj.com)

0819 ET - Talon Metals' decision to use its existing processing facility in Michigan rather than build a new one in North Dakota should ease capex pressure. In a report, TD Cowen's Craig Hutchison says that the company has opted to use the existing Humboldt Mill as the processing facility for its Tamarack Nickel-Copper-Cobalt Project, which is a "positive development for Tamarack, given the potential for meaningful capex reduction and development de-risking." He notes that while some costs will go up, such as transportation, the "potential capital savings will outweigh the incremental increase in operating costs." (adriano.marchese@wsj.com)

0810 ET - Bud brewer AB InBev doesn't need to do much more than keep a steady ship, James Edwardes Jones at RBC Capital Markets says ahead of a capital markets day set for later this month. The beer giant has shown signs of a sustained rebound this year following a tough period of sliding demand. "Predictable continuity would do very nicely," Edwardes Jones says. Analysts and investors will be looking for the group to show it can ensure continued evolution of its portfolio, as well as grow its margins and allocate capital smartly, he says. RBC has an outperform rating and a 93-euro target on the Brussels-listed stock. "Our price target doesn't need anything heroic, just confidence that AB InBev can keep doing what it's doing," Edwardes Jones says. (joshua.kirby@wsj.com; @joshualeokirby)

0757 ET - European equity valuations are elevated on overly optimistic assumptions around the artificial intelligence-driven investment boom, Bank of America analysts write. Markets price record margin expansion and post-recession levels of earnings per share growth over the next three years, the analysts say. "We see ample scope for disappointment." Increased competition between model makers will reduce pricing power and lower margins--the same factor that has caused past tech booms to fall flat, they say. Moreover, the increased cost of money for hyperscalers, and the risk of insufficient electricity supply, will drag data center build-out on the continent. The analysts see potential for the Stoxx 600 to fall by 9% to around 580 into early 2027. The index rises 0.55% to 639.49 Friday.(josephmichael.stonor@wsj.com)

0750 ET - The trade-offs from Adobe's strategy of expanding the top of its funnel with freemium offerings were on full display in the company's F3Q print, Stifel says in a note. "While the company delivered solid MAU growth, the lack of ARR raise underscores the company's focus and strategy of optimizing its go-to-market approach for MAU growth, not nearterm monetization," the analysts say. "With an uncertain timeline for a shift in that focus or a meaningful pickup in freemium conversion, we see more muted upside potential for the business in the near-term." Investors will likely keep scrutinizing the move toward freemium offerings and the durability of Adobe's growth, the analysts add. Adobe down 4% premarket. (elias.schisgall@wsj.com)

0730 ET - Canadian grocer Empire is looking gain more of a foothold in the discount space. National Bank of Canada analyst Vishal Shreedhar says in a report that the Sobeys parent gained some market share in its conventional, full-service banner, and maintained position in discount. Canadian consumers have for a while now been seeking value, especially in their groceries, where inflation has driven up costs. Shreedhar notes that Empire now expects to open more than 25 new stores, up from more than 20, and that the company may even accelerate square footage growth beyond fiscal 2027 "as it aims to gain market share in discount (the fastest-growing grocery space), which we view positively." (adriano.marchese@wsj.com)

0701 ET - European equities are less vulnerable to spikes in natural-gas prices than in 2022, but higher energy costs can still hurt the continent's stocks, Citi analysts write. Gas storage volumes are higher than many assume, they say, even as benchmark natural-gas prices on the continent trade at their highest levels since the end of 2022. While higher gas prices would hurt European stocks, Citi commodity analysts see European prices falling by around 30% through the end of the year. "We therefore remain constructive on European equities through mid-2027, supported by solid earnings-per-share growth," they write. (josephmichael.stonor@wsj.com)

0636 ET - India's consumer inflation likely accelerated to 4.9% on year in August from 4.45% in July, according to the median estimate of five economists polled by The Wall Street Journal. That would mark the highest reading this year and since the government revamped its consumer-price index data series in January. Vegetable prices continued to rise alongside a sharp jump in sugar prices, while higher gold prices likely pressured the core inflation, HSBC economists say in a note. Volatile energy prices have also raised input cost pressures that could gradually pass through to consumers, even as retail fuel prices have been kept unchanged since May, says DBS Group Research. The data is expected to be released on Monday. (kimberley.kao@wsj.com)

0608 ET - Palm oil fell during the Asian trade, erasing earlier gains. Concerns over rising stockpiles and a weaker-than-expected export performance highlighted in the latest data from the Malaysian Palm Oil Board may have weighed on sentiment, Kenanga Futures writes in a note. The Bursa Malaysia Derivatives contract for November delivery fell 67 ringgit to 4,818 ringgit a ton.