U.S. President Donald Trump speaks to reporters aboard Air Force One en route to the White House on November 2, 2025 after taking off from Palm Beach International Airport in West Palm Beach, Florida. Samuel Corum | Getty ImagesThis is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Here are five key things investors need to know to start the trading day:Supreme Court justices appeared skeptical of the legality of President Donald Trump's tariffs on Wednesday, when ...

Core Insights - Google is launching its most advanced chip, the Ironwood Tensor Processing Unit (TPU), to attract AI companies by providing custom silicon solutions [2][3] - The Ironwood TPU is designed to enhance performance for large AI models and real-time applications, significantly outperforming its predecessor [3][4] - Google is experiencing strong demand for its AI infrastructure, contributing to substantial growth in cloud revenue [5][6] Product Launch - The Ironwood TPU will be available for public use soon, following initial testing and deployment [2] - This chip can connect up to 9,216 units in a single pod, addressing data bottlenecks for demanding AI models [3] - Major clients, such as AI startup Anthropic, are planning to utilize up to 1 million Ironwood TPUs for their models [4] Market Position - Google is competing with Microsoft, Amazon, and Meta in the AI infrastructure space, focusing on custom silicon advantages over traditional GPUs [3] - The company is enhancing its cloud offerings to be more cost-effective and efficient to compete with AWS and Microsoft Azure [4] Financial Performance - In Q3, Google reported cloud revenue of $15.15 billion, marking a 34% year-over-year increase [5] - The company has secured more billion-dollar cloud contracts in the first nine months of 2025 than in the previous two years combined [5] - Google has raised its capital spending forecast for the year to $93 billion, up from $85 billion, to meet increasing demand [5][6]

Core Viewpoint - Disney's ESPN and Penn Entertainment are ending their sports betting partnership early, which will result in the rebranding of ESPN Bet to theScore Bet, concluding the collaboration after just over two years instead of the planned ten years [1][2][3]. Group 1: Partnership Details - The partnership, initiated in 2023, allowed ESPN to rebrand Penn's sportsbook from Barstool Sportsbook to ESPN Bet, with an original term of ten years [1][2]. - The agreement included a clause allowing either party to terminate the partnership after three years if specific market share performance thresholds were not met [3]. - Penn's CEO Jay Snowden noted that both companies had made significant progress but mutually agreed to wind down the collaboration [3]. Group 2: Financial Implications - Under the original agreement, Penn was to pay ESPN $1.5 billion in cash over ten years and provide ESPN with approximately $500 million in warrants to purchase about 31.8 million shares of Penn common stock [5]. - The annual cash payments of $150 million from Penn to ESPN will cease in the fourth quarter, along with the warrants for common stock [6]. Group 3: Future Directions - ESPN is now looking for other media and marketing opportunities in the sports betting space following the termination of the partnership [4]. - The ESPN Bet brand is expected to be phased out by December 1 [5].

Core Points - CarMax Inc. shares dropped over 10% in premarket trading following the unexpected resignation of CEO Bill Nash [1] - David McCreight has been appointed as interim CEO, while Tom Folliard takes on the role of interim executive chair [2] - The board aims to enhance sales, profitability, and reduce costs during this transitional period, acknowledging that recent results do not reflect the company's potential [3] Company Performance - CarMax has faced significant challenges this year, with its stock price declining approximately 50% in 2025, contrasting with other car retailers that have seen stock increases [4]

Core Points - Peloton is recalling its original Bike+ due to reports of seat post breakage leading to injuries, affecting 833,000 units sold between January 2020 and April 2025 [1][2] - The recall follows two injury reports related to falls caused by the seat post detaching, with a total of three reports received by the Consumer Product Safety Commission (CPSC) [2] - Peloton is offering a free seat post replacement for users to install at home and has emphasized the importance of product integrity and member well-being [3] - This is the second recall for Peloton related to seat post issues, with a previous recall in May 2023 affecting 2.2 million base Bike models due to similar problems [4] - The May 2023 recall resulted in higher membership churn, with 15,000 to 20,000 users pausing subscriptions, and incurred costs of at least $40 million for part replacements [5] - The current recall is the fifth since Peloton's founding, occurring as CEO Peter Stern aims to restore growth amid ongoing challenges [5] - The company has faced changing consumer dynamics post-COVID-19 and previous recalls, including a significant one for the Tread+ treadmill in 2021 [6] - Recently, Peloton relaunched its product lineup, raised prices, and introduced new features ahead of the holiday shopping season, with the current quarter being crucial for hardware sales [6] - Peloton is expected to report its first quarter fiscal 2026 earnings soon [6]

Core Viewpoint - Tesla is set to announce the results of a shareholder vote regarding a nearly $1 trillion pay package for CEO Elon Musk, with expectations leaning towards approval due to Musk's significant ownership and retail investor support, despite opposition from top proxy advisors [1][2]. Group 1: Shareholder Vote and Support - The shareholder vote is anticipated to favor Musk's pay package, as he holds substantial shares and retail investors typically align with his decisions [2]. - Major proxy advisors, including Glass Lewis and ISS, have recommended voting against the pay package, indicating some level of dissent among institutional investors [2]. Group 2: Arguments For the Pay Package - Supporters, including Board Chair Robyn Denholm and investor Ron Baron, argue that Musk's leadership is vital for Tesla's future, particularly in competing in robotics and AI [3]. - Baron emphasized Musk's unique role, stating that without his drive and standards, Tesla would not exist [3]. Group 3: Opposition to the Pay Package - Norges Bank Investment Management, managing Norway's $2 trillion sovereign wealth fund, expressed concerns over the size of the award and potential dilution, advocating for a no vote [5]. - Governance expert James McRitchie also opposes the plan, highlighting risks related to demand and profitability, especially with the expiration of federal EV tax credits [6]. Group 4: Pay Package Structure - The proposed pay package consists of 12 tranches of shares contingent on Tesla achieving specific milestones over the next decade, including a market cap of $2 trillion and various operational goals [7][9]. - Musk's current stake of approximately 13% could increase to about 25% if he receives the full package, which would grant him over 423 million additional shares [8]. Group 5: Financial and Operational Milestones - Key milestones tied to the pay plan include reaching 20 million vehicle deliveries, 10 million active Full Self-Driving (FSD) subscriptions, and significant earnings targets, starting from $50 billion in annual adjusted profit [10][12]. - Tesla's current market cap is $1.54 trillion, and the company reported an adjusted EBITDA of $4.2 billion in the third quarter [9][12]. Group 6: Contingencies and Additional Benefits - The pay plan includes provisions that allow Musk to earn shares without meeting operational milestones under certain "covered events," such as natural disasters or regulatory changes [14][15]. - The plan does not require Musk to commit a minimum amount of time to Tesla or limit his political involvement, raising concerns about his focus on the company [15][16]. Group 7: Historical Context and Governance Concerns - The vote follows a Delaware Court ruling that Musk's previous pay plan was improperly granted, necessitating a new proposal [17]. - Corporate governance expert Nell Minow criticized Musk's current role as a "part-time CEO," suggesting that a more dedicated commitment to Tesla would warrant consideration of such a substantial pay package [18][19].

Core Insights - Layoff announcements surged in October, indicating potential trouble for the labor market amid the AI boom [1][2] - October saw a total of 153,074 job cuts, marking a 183% increase from September and a 175% rise compared to the same month last year, the highest for any October since 2003 [2][7] - The technology sector experienced the highest level of layoffs, with 33,281 cuts announced, nearly six times the level in September [6] Labor Market Trends - The current year has seen 1.1 million job cuts, a 65% increase from the previous year, the highest level since 2020 [7] - Job creation is at its lowest point in years, with the optics of layoffs in the fourth quarter being particularly unfavorable [3] - Despite the layoffs, ADP reported a net job growth of 42,000 in October, reversing two months of losses in the private sector [4] Economic Context - Federal Reserve officials have expressed concerns about a softening labor market, leading to two interest rate cuts since September and an expected further reduction in December [5] - Industries are correcting after the pandemic hiring boom, with AI adoption, softening consumer and corporate spending, and rising costs contributing to hiring freezes [8]

Core Insights - Eli Lilly is set to begin late-stage trials for its experimental amylin obesity drug, eloralintide, next month following positive mid-stage study results [1][2] Group 1: Drug Efficacy - The highest dose of eloralintide resulted in an average weight loss of 20.1% over 48 weeks for patients with obesity or who are overweight [2] - The lowest dose led to a 9.5% weight loss at 48 weeks, compared to 0.4% for the placebo group [6] - A two-step dose escalation starting at 6 mg resulted in a 19.9% weight loss, while a three-step escalation starting at 3 mg led to a 16.4% weight loss [6] Group 2: Competitive Landscape - Eli Lilly's advancements position it as a strong competitor in the amylin treatment space, which is seen as the next wave of obesity treatments [3] - Major pharmaceutical companies like Roche, AbbVie, and Novo Nordisk are investing heavily in amylin treatments, indicating a competitive market [4] - Novo Nordisk and Pfizer are engaged in a takeover battle for Metsera, which has a potential once-monthly amylin drug in its pipeline [4] Group 3: Mechanism and Side Effects - Amylin analogs mimic a hormone that suppresses appetite and reduces food intake, potentially offering advantages over existing GLP-1 treatments [5] - Common side effects of eloralintide include mild to moderate gastrointestinal symptoms and fatigue, particularly at higher doses [7] - Patients who gradually increased their doses experienced fewer side effects [7][8]

Core Viewpoint - Nvidia CEO Jensen Huang expressed concerns that China is poised to surpass the U.S. in the AI race due to lower energy costs and looser regulations, although he later softened his statement, emphasizing that the U.S. must maintain its lead by supporting developers reliant on Nvidia's AI chips [2][3]. Group 1: Nvidia's Position in the AI Market - Huang indicated that China is "nanoseconds behind America" in AI, stressing the importance of the U.S. racing ahead to win global developers [3]. - Nvidia's market share in China has reportedly dropped to zero as Beijing conducts a national security review of its chips [5]. - The company has faced challenges in accessing the Chinese market, with speculation that China is using Nvidia's situation as leverage in trade negotiations [6]. Group 2: Regulatory and Trade Dynamics - Following discussions with U.S. President Donald Trump, Nvidia and AMD agreed to pay 15% of their Chinese revenues from existing AI processor sales to the U.S. government [4]. - Huang criticized the West, including the U.S., for being hindered by "cynicism" and excessive regulation, contrasting this with China's energy subsidies that lower costs for local developers [9]. - Trade talks between the U.S. and China did not yield concessions on chip policy, leaving Nvidia's access to the Chinese market uncertain [7][8].

Core Insights - Maersk has raised its full-year operating profit forecast to between $9 billion and $9.5 billion, up from a previous range of $8 billion to $9.5 billion, indicating resilience in demand and operational efficiency [1][3][4] Financial Performance - The company reported preliminary underlying EBITDA of $2.68 billion for the July-September period, which is above the $2.6 billion expected by analysts but significantly down from $4.8 billion during the same period a year earlier [2] - Maersk's third-quarter operating profit exceeded expectations, driven by increasing container volumes and operational cost control [3][4] Market Outlook - The global container market volumes are expected to grow by around 4% in 2025, an increase from the prior forecast of 2% to 4% [5] - The CEO emphasized that the narrative around the decline of globalization is premature, citing the ongoing strength of China's manufacturing sector as a key driver of trade growth [5][6]