The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1616 ET - New-vehicle sales in the U.S. are expected to slow in upcoming month, with the May sales pace forecast to reach about 16 million, Cox Automotive says. That sales pace is up from the 15.8 million seen in May of 2024, but down from April's 17.3 million level and the 17.8 million reported in March, Cox says. Sales in the vehicle market were strong since tariff announcements in March, according to Cox, though May is likely the last month to exhibit pull-ahead sales gains, with sales momentum expected to slow further in coming months. Charlie Chesbrough, senior economist at Cox Automotive, said "much of that pull-ahead demand has now been satiated, so consumer demand is expected to fall this month." (stephen.nakrosis@wsj.com)

0733 ET - Tesla shares edge higher Tuesday premarket after Elon Musk said he was "super focused" on running his companies and President Trump delayed additional tariffs on the European Union until July 9. Tesla stock is up 2.7% premarket, touching a high of $349.80. Musk wrote in a post on X over the weekend that he was back to spending 24 hours a day at work and sleeping in conference, server and factory rooms, saying he had to be "super focused" on his companies. Tesla's premarket gains come even as company sales in the European Union slumped for a fourth consecutive month. (mauro.orru@wsj.com)

0612 ET - European airlines stand to benefit from demand for travel meeting lower fuel prices, despite macroeconomic risks, RBC Capital Markets' Ruairi Cullinane says in a note. Passenger traffic in Europe grew 6% on year in April, recovering from weaker momentum in March, and is up 4% on year in the year to date. Fuel prices in euros, meanwhile, are down about 24% so far in the second quarter, the analyst says. Barclaycard data suggests that U.K. average airline pricing remains up on year, the analyst says. Activity on Jet2, British Airways and easyJet websites is relatively strong, though European airline websites overall were just 1% up on year for March and April, the analyst says. "A moderation in European airline capacity growth for Summer 2025 should support the supply-demand balance and pricing power for airlines," Cullinane adds. (pierre.bertrand@wsj.com)

0511 ET - European defense stocks are on the rise after Mark Rutte, secretary general of NATO, said Monday that he expects the alliance to agree to a broad defense spending target of 5% of GDP at NATO's summit in The Hague next month. Rutte was speaking at a meeting of the NATO Parliamentary Assembly in Dayton, Ohio. In Frankfurt, Rheinmetall climbs 2.2% at 18.82 euros, Hensoldt gains 3.4% at 84.7 euros, and Renk Group rises 1.9% at 73.19 euros. In London, QinetiQ jumps 4% to 4.85 pounds, BAE Systems is up 2.8% at 18.93 pounds, and Rolls-Royce advances 2.7% at 8.6 pounds. In Paris, Thales rises 1.8% at 266.6 euros, while Dassault Aviation gains 0.6% at 310.40 euros. In Rome, Leonardo is up 2.5% at 54.40 euros. (cristina.gallardo@wsj.com)

0210 ET - The growing market share of SATS is expected to support its FY 2026 earnings growth, CGS International analysts write in a note. The company shared that its cargo tonnage handled has outpaced global cargo demand since 3Q FY 2024, reflecting market share gains, which are also likely to offset global cargo weakness in FY 2026, they say. SATS has seen sustained volume growth despite escalating trade tensions between the U.S. and its trading partners since Trump's 'Liberation Day' in April, they add. This should be from supply chain re-routing and front-loading effects from the temporary trade truce between the U.S. and China, they say. CGS International raises its target price to S$3.60 from S$3.05, while maintaining an add rating on the stock. Shares are at S$3.11. (amanda.lee@wsj.com)

2138 ET - SATS's share price has underperformed the Singapore market this year partly due to tariff risks, OCBC Investment Research's Ada Lim says in a report. OCBC lowers its FY 2026 revenue forecast for SATS, with this decline being driven by the gateway services segment, which is mainly made up of ground handling and cargo. The International Air Transport Association has guided for a downgrade of its initial 6% cargo demand growth forecast for 2025, with revised projections expected to be unveiled at its annual general meeting in early June, the analyst notes. OCBC trims the stock's fair value estimate to S$3.73 from S$3.93 while maintaining its buy rating. Shares are 1.3% higher at S$3.09. (ronnie.harui@wsj.com)

2021 ET - HD Hyundai Mipo's operating profit margin is expected to improve on strong demand for lucrative liquefied natural gas bunkering vessels, Daiwa Capital analysts Mike Oh and Daeho Son write in a note. They expect LNG bunkering vessels to drive the South Korean shipbuilder's OPM expansion over the next few years. The company's estimated OPM is projected to come in at 6.8%-11.6% for 2025-2027, compared with 5.8% in 1Q of 2025, they say. Management expect the share of LPG vessels to the company's backlog of orders to rise to 25% in 4Q from 14.7% in 1Q this year, they add. (kwanwoo.jun@wsj.com)

1938 ET - Eagers Automotive's new distribution agreement with China's BYD largely maintains the status quo in the near term, reckons Jefferies. Eagers has agreed to a term sheet that would extend its retail partnership with BYD for five years, with an option of another five years after that. Analyst John Campbell notes the new deal doesn't preclude more third-party distribution of BYD in Australia. Still, Jefferies thinks this won't amount to much in the near term. "As a significantly growing brand in Australia with the weight of BYD investment in the brand, it is understandable that other auto dealers would seek the opportunity to distribute this leading Chinese brand," says Jefferies, which has an underperform call on Eagers. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 27, 2025 16:50 ET (20:50 GMT)

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