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.

0420 GMT - Tesla's sales volumes seem set to fall following the expiration of a U.S. EV subsidy, Morningstar strategist Seth Goldstein writes in a note. The U.S. spending bill would revoke the $7,500 EV tax credit at the end of 2025, seven years before it is set to expire, he adds. President Trump has also threatened to cancel all of Musk's government contracts and subsidies, which would affect Musk's SpaceX more than Tesla, he says. For now, Morningstar maintains its $250 fair value estimate on Tesla. It doesn't see subsidies as a growth driver for EVs in the long term. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0335 GMT - CAR Group's bull at Citi sees little risk to their 2H forecasts for the Australian vehicle advertiser's U.S. unit. Analyst Siraj Ahmed draws clients' attention to recreational-vehicle maker Thor's 3Q result, which was stronger than market expectations. He writes in a note that this supports his view that RV demand in the U.S. remains steady, which is good news for CAR's Trader Interactive unit. Citi keeps a buy rating and A$42.00 on the stock, which is up 0.4% at A$36.07. (stuart.condie@wsj.com)

0316 GMT - An improvement in sales of the top 11 models fitted with ARB Corp. equipment is linked almost entirely to a single vehicle, Canaccord Genuity analysts point out. They tell clients in a note that while the 6.3% on-year rise is positive for the Australian accessory manufacturer, it mostly relates to an unusual jump in sales of the Toyota Prado. This stems from strong current sales of a new model comparing with low year-earlier sales as buyers waited on its release, they observe. However, they add that the Prado is a high-fitment rate vehicle, so the surge will be helpful to ARB. Canaccord Genuity has a hold rating and A$34.70 target price on the stock, which is down 0.3% at A$31.77. (stuart.condie@wsj.com)

0216 GMT - Marco Polo Marine's FY2025 deployment of a new commissioning service operation vessel appears positive, RHB Research's Alfie Yeo says in a report. The vessel has secured charters at robust rates for the next three years and is taking more orders beyond that. The marine logistics group's earnings are likely to be supported by ship chartering from the rest of its fleet, driven by better utilization and charter rates, more vessels, and higher drydock capacity. RHB maintains a buy rating on the stock while trimming the target price to S$0.07 from S$0.08 to reflect reduced FY 2025-2027 earnings forecasts stemming from weaker-than-expected 1H FY 2025 results. Shares are unchanged at S$0.044. (ronnie.harui@wsj.com)

1834 GMT - CIBC says the International Air Transport Association is forecasting 2025 global airline passenger revenue of $693 billion, down from the previous forecast of $705 billion. Analyst Kevin Chiang says this is due to weaker passenger yields and lower traffic due to tempered economic factors. On the cargo front, IATA is forecasting revenue $142 billion versus the previous forecast of $157 billion. Chiang says the revision is due to tariffs that dampened trade volumes and air cargo's lower comparative advantage against ocean cargo as ocean cargo rates decreased. (adriano.marchese@wsj.com)

1806 GMT - Boxship freight rates jumped to their highest since the start of the year with U.S. importers bringing in more cargo from China on the back of the three-month tariff truce deal between Washington and Beijing. The cost to send a 40-foot container from Shanghai to Los Angeles jumped last week to $5,172 per, up 58% from the week earlier. Transpacific spot rates stood at around $2,000 at the start of the year. "A period of robust trade volumes now looks likely over the summer, particularly on the transpacific," Clarksons said in a research note. (costas.paris@wsj.com)

1636 GMT - Winter wheat shipped by rail costs less than it did last month, the USDA says. In its weekly Grain Transportation Report the rail tariff rate sank for hard red winter wheat sent to ports in Texas. BNSF Railway and Union Pacific both brought their rates down, BNSF by $500 per railcar and UP by $400 per car. The USDA says that the cost to transport winter wheat on these railways is down by as much as 16% from the previous year. CBOT wheat futures are up 0.6% in afternoon trading. (kirk.maltais@wsj.com)

1603 GMT - U.S. diesel and gasoline futures pick up from yesterday's selloff that followed larger-than-expected inventory increases and declines in weekly demand. While refineries step up capacity use to meet summer demand for gasoline and jet fuel, demand for diesel typically softens, leading to inventory builds ahead of peak freight and harvest seasons in the fall, says Matt Muenster of transport technology firm Breakthrough. "We continue to see an uneven experience in the truckload market with tonnage generally flat year-over-year thus far into 2025," he says. Nymex diesel is up 1.2% at $2.0948 a gallon. Gasoline is 1.3% higher at $2.0604 a gallon. (anthony.harrup@wsj.com)

1322 GMT - Capital Economics believes Canadian trade data for April mark peak weakness for domestic exporters and importers. CapEcon says there might be scope for a rebound in the coming months as Canadian exporters complete compliance measures to become USMCA compliant, and thereby evade a hefty 25% US tariffs. But the firm expects export volumes will remain low for the remainder of 2025 absent a scaling back in President Trump's trade policy. Exports fell 10.8% on a nominal basis, and 9.1 on a volume, or price-adjusted, basis. Ten of the 11 sectors record export drops in April, led by sizable declines for motor vehicles and industrial machinery. The bad trade figures in April put expectations for a 0.1% month-over-month April increase in GDP at risk, CapEcon adds. (Paul.Vieira@wsj.com; @paulvieira)

1317 GMT - Canadian National Railway's ace up its sleeve could be the Prince Rupert port. TD Cowen's Cherilyn Radbourne says in a report that CN aims to grow Prince Rupert's inbound and outbound volumes at a compounded annual growth rate of about 10% during 2024-2027 period. This will be supported by international imports and exports of natural gas liquids, coal, and plastic pellets, and other commodities. "The result should be a more diversified and balanced cargo mix," Radbourne says, noting also that CN has been pacing its network investment to match this anticipated demand growth. Currently, CN has logistics projects under way that should take Prince Rupert's existing competitive advantages "to the next level," Radbourne says. (adriano.marchese@wsj.com)

1131 GMT - Volvo's stock should rerate on an expected recovery of its key end markets that are currently at a trough, Bank of America Securities analysts write. A market recovery should be helped by lower interest rates, continuing and forthcoming stimulus in China and Germany, and gradually lower tariff uncertainty, the bank says. "Volvo's multiple usually expands as end markets recover, more than offsetting any small near-term earnings cuts due to lower U.S. deliveries." The current share price is a particularly attractive entry point, in the bank's view. The bank reinstates coverage of Volvo with a buy rating, up from underperform, and a 340 Swedish kronor price objective, up from 249 kronor. Shares rise 0.7% to 262.50 kronor. (dominic.chopping@wsj.com)

0852 GMT - Germany's DAX rises in morning trade to reach a new record intraday high in a session with modest but broad-based gains across major European stock indexes. The DAX is up 0.4% at 24,366, having risen as high as 24,399.03, climbing past the previous intraday high of 23,346.15 set Wednesday. This marks the German blue-chip index's 30th all-time high this year, according to a tally by HSBC. Bayer, Heidelberg Materials and Daimler Truck Holding top the DAX gainers. Elsewhere, the Stoxx Europe 600 rises 0.3%, and the main indexes in the U.K., France, Spain, Italy, Switzerland and the Netherlands are all up. (adria.calatayud@wsj.com)

(END) Dow Jones Newswires

June 06, 2025 04:20 ET (08:20 GMT)

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