Ether Lifted by Improved Institutional Demand — Market Talk

0900 ET - Institutional demand for ether is improving, offsetting the impact of tighter U.S. financial conditions, Zaye Capital Markets analyst Naeem Aslam says in a note. Recent exchange-traded fund inflows, corporate treasury accumulation and ether's ability to retain most of its weekly advance suggest institutional participation has improved materially, he says. If ETF inflows remain positive and large holders continue accumulating ether while the cryptocurrency holds above $2,600-$2,650, it could rise above $2,800 and potentially $3,000, he says. If institutional flows reverse or higher U.S. yields trigger broader crypto deleveraging, that support would weaken, he says. Ether rises 1.1% to $2,714, LSEG data show. ([email protected])0856 ET - Akamai Technologies' $11.6 billion multiyear agreement with Anthropic is in addition to the $1.8 billion multiyear deal the companies inked earlier this year, bringing the total commitment from Anthropic to date to $13.4 billion over seven years, according to D.A. Davidson in a research note. The latest agreement also includes an option for Anthropic to expand the commitment by up to an additional $9 billion over the same period, analysts Rudy Kessinger and Benjamin Smith add. They haven't yet updated their estimates for Akamai, saying they need a bit more time to digest the numbers. But they know which way the estimates will move: "In short, future growth & EPS estimates will move substantially higher," they say. Akamai jumps 13% premarket. ([email protected])0754 ET - Many investors and traders are likely looking forward to closing out a brutal week for bonds, but next week another potential worry awaits, September payrolls. "Given the decline in initial and continuing jobless claims over the month, the risk of a stronger September reading is rising, which could justify markets pricing in a high probability of an October hike," says JPMorgan in a note. But the economists at Barclays aren't convinced the Fed will move next month. "We expect the FOMC to remain mindful of inconsistencies between the payroll and household surveys, where we expect another flat reading for the unemployment rate (at 4.1%) amid low labor supply growth. In our view, this combination would keep an FOMC hold in play for the October meeting, as it continues to assess data developments, before proceeding with a 25bp rate hike in December." ([email protected])0733 ET - Cruise stocks have come under pressure, weighed upon by higher fuel costs, rising interest rates and geopolitical uncertainty. Viking distinguishes itself from other major cruise lines, though, marketing its smaller ships, included excursions and emphasis on time ashore to an older, more affluent customer base, StoneX analyst Mike Hickey says in a note. The company's direct marketing capability gives it a way to reach prospective guests and stimulate bookings before relying on broad fare discounts. Looking ahead to next year, Hickey says Viking's current booked-rate strength should help support continued growth, even as the company faces headwinds. StoneX initiates coverage of Viking with a buy rating and a $99 price target. Viking is up 1% to $80.32 premarket. ([email protected])0458 ET - Akamai Technologies' $11.6 billion multiyear agreement with Anthropic demonstrates the advantage of the cloud computing company's software, J.P. Morgan analysts write. The deal includes the potential to add another $9 billion in revenue for Akamai, an option the analysts expect to be activated. Akamai's software means data can travel quickly and with minimal lag, the analysts say. Because of Akamai's efficiency, the company can generate an average $22 million per megawatt of power--a level that beats out compute deals with other cloud companies. The analysts raise their price target for Akamai shares to $167. The stock surges 21.5% premarket to $133.90. ([email protected])0159 ET - Broad index and retirement funds are now tied to the AI boom, with technology stocks accounting for about 40% of the S&P 500. Only three chip makers account for more than 25% of the MSCI EM index, says Ipek Ozkardeskaya, senior analyst at Swissquote. AI is the "cornerstone that must not crack," she adds. For now, U.S. equities will have the seasonal wind at their backs and the equity rally could extend into the year-end, she says. The worst-case scenario would be that something cracks in the AI story, triggering a notable pullback, she adds. ([email protected]; @JamesGlynnWSJ)