Nvidia's revenue outlook, Meta's $16.7B settlement, mail-in voting and more in Morning Squawk
Here are five key things investors need to know to start the trading day.
Good morning. As we remember Dolly Parton's legacy, I've particularly enjoyed learning more about her Imagination Library in Cincinnati.
Nasdaq-100 futures are higher this morning. The market is coming off a muted day.
Here are five key things investors need to know to start the trading day:
Nvidia silenced its skeptics yesterday with strong quarterly results and a better-than-expected revenue forecast. The chipmaker beat analysts' expectations on both lines and reported a more than 100% year-over-year jump in quarterly revenue, sending the stock more than 6% higher before the bell.
Meta on Wednesday settled a major case with a group of state attorneys general who alleged that the social media giant misrepresented child-related mental health harms tied to its platforms. The Facebook parent agreed to pay $16.7 billion under the agreement, which was approved by the court later yesterday afternoon.
Beyond financial concessions, Meta must also make changes to its apps including adding daily usage limits and nighttime blocks for teenagers, and introducing new tools for parents and guardians.
But as CNBC's Jonathan Vanian writes, the settlement isn't the end of Meta's legal woes. "It is not preemptive in any way," California Attorney General Rob Bonta said Wednesday, calling the settlement "a floor conceptually, not a ceiling." Bonta, who co-led the suit, will join CNBC's "Squawk on the Street" at 10 a.m. ET today. Watch live on CNBC or CNBC+.
OpenAI is sharing more details about how its AI models breached Hugging Face last month, what OpenAI has called an "unprecedented cyber incident."
In its 37-page report , the AI company documented how its models navigated a series of evaluations before and during the incident. OpenAI also said it's focused on improving its security and containment, monitoring, model behavior and incident response in hopes of preventing a similar situation in the future.
Meanwhile, Nvidia reportedly agreed to buy Hugging Face, the open-source platform hacked by OpenAI's agents, for $12.9 billion. Such a deal would extend the chipmaker's reach into open-source models and software. Neither company confirmed the report.
CNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.
A federal judge lifted the last injunction stopping President Donald Trump's mail-in voting order, allowing the White House to impose new requirements before November's midterm election.
The U.S. Postal Service previously said it wouldn't apply the rule to elections this year unless both injunctions were lifted, which is now the case following Wednesday's ruling. The USPS did not respond to CNBC's request for comment.
U.S. District Judge Indira Talwani, who earlier this month issued a preliminary injunction, said a Supreme Court ruling on a related case necessitated her reconsideration. But Democratic-led states filed a new lawsuit against the rule on Wednesday, and voting-rights groups amended their ongoing complaint.
Squishy toys are taking off in the U.S. Sales hit around $297 million through June, according to Circana's Entertainment Knowledge Group, quadrupling sales from the same time a year ago.
The malleable toys, which can be shaped like dumplings and ice cubes, have gained traction on social media. As CNBC's Jenny Lee writes, their relatively low prices may help that online buzz translate into sales.
Euromonitor International's Loo Wee Teck said that the product category plays into the broader trend of anti-digital play. But it remains to be seen whether excitement for squishy toys will cool over time following the current boom.
Ahead of the Federal Reserve's symposium in Jackson Hole, Wyoming, July's personal consumption expenditures price index released yesterday showed that inflation is still elevated . Here are the headline numbers:
