3 Reasons We’re Fans of Reddit (RDDT)

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

1330 ET - Backing software providers to clean energy-infrastructure operators is a safer way to capitalize on the industry's expansion as it avoids the risks of investing in unproven technologies, says John Tough, managing partner at Energize Capital, a climate-focused investment firm in Chicago. "We're more bullish on the industrial technologies that are already here because of how hard it is to get anything new done," Tough says. "Software is great at helping [existing] industries scale." As example, he cites Energize's investment in Nozomi, a cybersecurity company focused on heavy industries such as water treatment and power. Mitsubishi Electric last week agreed to acquire the business in a $1 billion deal. Nozomi is "helping build all the reshoring and remanufacturing coming into the United States-technologies that are already viable," Tough adds. (luis.garcia@wsj.com; @lhvgarcia)

1314 ET - Ralph Lauren sees its women's business as one of its biggest growth opportunities over the next three years, executives say during an investor call. The segment hit $2 billion in sales in fiscal 2025, making Ralph Lauren one of the few apparel brands to hit that mark, Chief Product and Merchandising officer Halide Alagöz says. Still, the company has about 1% of the global premium market for women, so there is a lot of room to expand. Growth in women's is expected to outpace the total company's growth within the next three years, Alagöz says. (katherine.hamilton@wsj.com)

1228 ET - Similarweb data suggest Reddit is seeing more-than-expected active users and accelerating ad portal visits, which should drive higher revenue, say Oppenheimer analysts. Through investments in facilitating onboarding and better in-app searching, Reddit is doing a better job of converting visits to logged-in users, which is its primary driver of revenue. Third-party data suggest a 1.6 million net increase in logged-in daily active users for 3Q, 1.1 million above Wall Street's consensus. Data also show an acceleration of visits to Reddit's ad portal with improving return on investment driving higher ad spend. Oppenheimer raises its price target to $300 from $215. Reddit shares rise 0.5% to $264.97. (nicholas.miller@wsj.com)

1209 ET - Canadian Industry Minister Melanie Joly says she will meet next week with the CEOs of Anglo-American and Teck Resources to discuss their proposed merger, adding she hasn't heard much from either company about why the transaction would provide a net benefit to the national economy. "We think that we need to have further conversations with the companies," Joly says. The Anglo-Teck deal needs Canadian regulatory approval to proceed, under the country's foreign-investment law, which dictates any foreign-led deal needs to show it will provide a so-called "net benefit" to the economy. The merger also marks a test of recent Canada policy that foreign-led deals involving critical minerals--such as copper, zinc and molybdenum, all of which Teck produces--would only be approved in exceptional circumstances. (paul.vieira@wsj.com; @paulvieira)

1135 ET - Gold prices surged past $3,700 a troy ounce on Tuesday, hitting a fresh record high amid a weaker U.S. dollar and firm expectations that the Federal Reserve will cut interest rates. Futures rise 0.1% to $3,722 an ounce, after hitting $3,739.90 an ounce in intraday trading earlier. "Should the central bank's guidance fall short of dovish market expectations, gold could face near-term selling pressure," says Eric Chia, strategist at brokerage Exness. "However, any confirmation of multiple cuts would strengthen its rally, potentially leading to new highs." The rally is also supported by central-bank buying, ETFs inflows and geopolitical tensions contributing to growing demand for safe-haven and inflation-hedging assets. (giulia.petroni@wsj.com)

1124 ET - Global equities allocations are at a 7-month high, indicating rising investor optimism, Bank of America's global fund manager survey for September shows. A net 28% of institutional investors favor equity allocations over other assets, a 7-month high, BofA says. (miriam.mukuru@wsj.com)

1122 ET - The proportion of investors who considered the dollar to be overvalued rose to a three-month high in September, Bank of America's global fund manager survey shows. Some 49% of investors said the dollar is overvalued, up from 44% last month. The survey also showed investors remain underweight the dollar, expecting it to underperform. (renae.dyer@wsj.com)

1121 ET - Sterling is seen as the most overvalued in almost 10 years, according to Bank of America's September global fund manager survey. The survey shows a net 12% of investors now think sterling is overvalued, flipping from a net 3% undervalued a month ago. The currency is considered the most overvalued since December 2015. Sterling has appreciated about 1% against the dollar in the month to date and 9% so far this year, LSEG data show. It last trades up 0.3% at $1.3642, having earlier reached a two-month high of $1.3671. (renae.dyer@wsj.com)Expectations of a global "hard landing" are rising, according to Bank of America's global fund manager survey for September. "Expectations of U.S. 'Hard Landing' Rise, BofA Fund Manager Survey Shows — Market Talk," at 1440 GMT, incorrectly said the expectations related only to the U.S. economy in the headline and text. The correct version follows: 1518 GMT - The proportion of investors expecting a 'hard landing' for the global economy doubles, although it remains low, Bank of America's global fund manager survey for September shows. A 'hard landing' is a rapid slowdown in economic growth, possibly leading to a recession. A total of 10% of investors polled in the September BofA survey expect a hard landing in the global economy, up from 5% in the August survey. (miriam.mukuru@wsj.com)

1112 ET - A majority of investors expect a 'soft landing' for the global economy, according to Bank of America's global fund manager survey for September. A total of 67% of investors anticipate this scenario, where the economy slows but avoids a recession and inflation is contained. Moreover, 18% expect 'no landing,' where the economy continues to grow. A total of 10% of investors polled expect a sharp decline in global economic growth, or a 'hard landing,' the survey shows. (miriam.mukuru@wsj.com)

1109 ET - A second inflation wave is considered the biggest tail risk--an event that has a low probability of happening--according to 26% of investors polled in Bank of America's global fund manager survey for September. This is closely followed by the risk of the U.S. Federal Reserve losing independence and U.S. dollar debasement, cited by 24% of those polled. Another 22% of investors cite a disorderly rise in bond yields. The risk of a trade war triggering a global recession is fading, with just 12% citing this as the biggest tail risk in September, down from 29% in August, BofA says in a press release accompanying the survey. (jessica.fleetham@wsj.com)

1107 ET - Ralph Lauren's updated strategic growth plan, unveiled ahead of today's investor meeting, is mostly similar versus its 2022 plan, according to Jefferies. The company's three-year revenue guidance was in line with expectations, while its operating margin view was in line or slightly below estimates, the analysts say, as management "retained its prudent stance given the uncertain environment and conservative tendency." The analysts say they expect to see continued brand momentum near-term, and believe the company's strategy--however familiar it may be--should continue to drive growth. Ralph Lauren is off 1.2%. (katherine.hamilton@wsj.com)

Similarweb data suggest Reddit is seeing more-than-expected active users and accelerating ad portal visits, which should drive higher revenue, say Oppenheimer analysts. Through investments in facilitating onboarding and better in-app searching, Reddit is doing a better job of converting visits to logged-in users, which is its primary driver of revenue. Third-party data suggest a 1.6 million net increase in logged-in daily active users for 3Q, 1.1 million above Wall Street's consensus. Data also show an acceleration of visits to Reddit's ad portal with improving return on investment driving higher ad spend. Oppenheimer raises its price target to $300 from $215. Reddit shares rise 0.5% to $264.97. (nicholas.miller@wsj.com)

(16:11 GMT) Reddit Price Target Raised to $300.00/Share From $215.00 by Oppenheimer