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.

1441 GMT - Ferrari's confidence on its outlook stands out at a time when many companies in the auto sector and elsewhere are suspending their guidance due to uncertainty about U.S. tariffs and second-order effects, Bernstein analysts say in a note. The Italian luxury-car maker reported first-quarter results that beat consensus expectations and confidently reiterated guidance originally provided in February, Bernstein says. The company delivered fewer cars than expected, but revenue per unit exceeded estimates, the analysts say. Moreover, Ferrari said its order book covers the entirety of 2026, suggesting little has changed since the imposition of tariffs and confirms continued robust demand, according to Bernstein. Shares rise 2% to 418.50 euros. (adria.calatayud@wsj.com)

0901 GMT - Continental's first-quarter results beat expectations with all segments showing progress, Bernstein analyst James Brady says in a research note. The German car-parts company faced a lot of noise during the quarter after it decided to spin off the automotive business, treating it as a discontinued operation, Brady says. "It is a good quarter," he adds. Consensus for the full-year is slightly ahead of the guidance for Automotive and Tires, but below the guidance for ContiTech, he adds. Shares trade 0.7% higher at 70.60 euros. (nina.kienle@wsj.com)

0836 GMT - German stocks fall after the country's chancellor-in-waiting, Friedrich Merz, failed to get the support of a majority of lawmakers in the first round of voting. The DAX is down 0.9%, reversing gains earlier in the session and after ending Monday within a touching distance of an all-time closing high reached in March. Most constituents in the German blue-chip index fall, with MTU Aero Engines, Porsche AG and Rheinmetall among the biggest decliners. Germany's MDAX index of medium-sized companies and the SDAX small-capitalization index are down 1.9% and 1.3%, respectively. (adria.calatayud@wsj.com)

0412 GMT - The sequential new order declines seen in Xiaomi's EV sector in April is likely due to negative impacts from its recent highway accident, Deutsche Bank Bin Wang writes in a note. The reduced advertising regarding autonomous driving for the month may have added pressure on new orders, he adds. The company is likely to launch its second factory in 2H25, expected to support sales of 50,000 to 150,000 units this year. DB expects Xiaomi's EV operation gross margin to likely to further rise to around 22% in the 1Q and for its full-year gross margin to increase to 24.7%. DB maintains a buy rating for the stock but raises its target price to HK$74.00 from HK$71.50. Shares last traded at HK$51.75. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0411 GMT - Tan Chong Motor's collaboration with Chinese auto brand Wuling to launch electric vehicles in Malaysia is seen as a strategic effort to expand its product lineup, but the effects on near-term sales are expected to be limited, says MIDF Research analyst Amalia Zarir in a note. Despite plans to locally assemble the compact TQ Wuling Bingo by 4Q and explore regional exports, a tough operating environment is likely to keep Tan Chong in the red. MIDF downgrades its rating to sell from neutral, citing the recent share price rally as an opportunity to take profit, while maintaining its target price at MYR0.34. Shares are 2.6% lower at MYR0.56. (yingxian.wong@wsj.com)

1701 GMT - United Airlines' capacity reduction at Newark airport could extend into early summer, Deutsche analysts say. United said on Friday it was eliminating 35 daily flights, or about 10% of its total departures at that airport. Deutsche analysts believe the reduction could last through at least mid-June when its third runway is expected to be fully operational. United is requesting that Newark become a Level 3 airport for the first time since 2016. This comes as Alaska, Delta, Frontier, Spirit and JetBlue all reduced capacity to mitigate slowing demand. Most airlines appear to be holding off on supply cuts until after the peak summer months, the analysts say. (katherine.hamilton@wsj.com)

1647 GMT - ON Semiconductor's 1Q sales to the industrial market were more favorable than expected, falling 4% sequentially, Chief Financial Officer Thad Trent says on a call with analysts. The industrial sector is showing signs of recovery, Trent says, although some pockets are still down. "There is uncertainty given the tariff situation, but there's some early signs of stabilization, which gives us hope," Trent says. (katherine.hamilton@wsj.com)

1645 GMT - ON Semiconductor says it doesn't see a direct impact from tariffs at the moment, but remains cautious about its exposure to the automotive industry. Automotive and industrial sales accounted for 80% of ON Semiconductor's 1Q revenue, and automotive revenue decreased 26%. Chief Executive Hassane El-Khoury says on a call with analysts that the company has particular exposure to the EV market, adding that EV demand outside of China has not seen a recovery. When asked about headwinds from auto tariffs, El-Khoury says, "There could be indirect impact, but that is a time-based question, which I don't have an answer to. The best thing I can give you is our cautiousness in the guide and our outlook." (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

May 06, 2025 12:20 ET (16:20 GMT)

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