Yields keep rising, Novo's tough week, why cat product sales are surging and more in Morning Squawk

Happy Friday. Your morning cup of joe may soon get harder to find, as Starbucks closes more of its stores.

Stock futures are slightly higher this morning following a muted day for the market.

Here are five key things investors need to know to start the trading day:

Treasury yields took center stage on Wall Street this week as they rocketed to highs not seen in decades. Now, traders are assessing what the moves mean for a swath of assets and wondering whether yields' rapid climb is an omen that something could break in the market.

Here's the latest:

• The 30-year Treasury yield hit its highest level since 2004 yesterday. The 10-year note also continued to rise, building on its biggest single-day jump in over a year.
• History shows that a sharp upswing in yields should be just as concerning for investors as any multiyear highs. As one analyst told CNBC, "We should be prepared or forewarned that rates are rising and something is going to break."
• CNBC's Matt Peterson writes that rising yields are offering a reality check for the U.S., as it grapples with persistent inflation and a growing debt pile. They're also exposing the tension between Federal Reserve Chairman Kevin Warsh and Treasury Secretary Scott Bessent.
• The average rate on the 30-year fixed mortgage jumped to 7.45% yesterday, according to Mortgage News Daily. Experts warn that increasing yields will also lead to higher car loan interest rates.
• Despite pressure from the Treasury market, the S&P 500 is still on track to post its first winning week in three. The Dow Jones Industrial Average, meanwhile, is set to log its fourth straight week of losses.
• Follow live market updates here.

The Senate voted down a resolution that would have called for an end to the Iran war by a razor-thin margin yesterday. All but four Republican senators voted against the measure, even as the GOP grapples with concerns that the conflict — and its effect on energy prices — could hinder its candidates' chances in the midterm elections.

The largest U.S. business groups this week cautioned Trump against a diesel export ban, which the president has said he's pushed for amid the run-up in energy costs. Industry members have warned that such a move could ultimately raise diesel costs.

Meanwhile, oil prices are lower this morning after Iranian state media reported that Tehran's Foreign Minister, Abbas Araghchi, said the country would reopen the Strait of Hormuz within seven days "if certain conditions are met."

Novo gave a look into its plan to fuel growth beyond its blockbuster weight loss drugs this week. But as CNBC's Annika Kim Constantino and Elsa Ohlen write, the drugmaker still has work to do to convince investors it can hold its own as Eli Lilly chips away at the Danish drugmaker's market share.

The drugmaker enjoyed an early lead in the oral weight loss market, thanks to its Wegovy pill, but Lilly CEO Dave Ricks told CNBC earlier this week that one-third of new GLP-1 patients are taking its Foundayo pill. Novo on Monday assured investors that it would have a pipeline of drugs — including some outside of its core obesity and diabetes area — that could enter the market with a bang.

U.S.-listed shares of Novo have dropped more than 10% so far this week, putting the stock on track for its worst performance since February. At the same time, Lilly shares have climbed about 2.5%.

Meta was late to the generative artificial intelligence race. Now, Wall Street is rewarding the company's efforts to make sure history doesn't repeat itself in the consumer AI game.

After revealing its personal agent app Muse earlier this month, the Facebook parent this week unveiled its Muse Charm device in an apparent bid to get ahead of OpenAI and Google. As CNBC's Jonathan Vanian writes, the device also reflects Meta's efforts to reduce its reliance on Apple for distribution.

CEO Mark Zuckerberg offered few specifics on what the gadget would actually do, but that didn't seem to discourage investors. Meta shares have soared nearly 17% this week, on track for their biggest weekly rally since early 2024.

Cat owners are splashing out for their feline friends. It's a treat for pet retailers like Chewy, General Mills and Petco.

The American Pet Products Association estimated that 53 million households owned a cat in 2025 following a recent surge. Executives attributed the rise to the animals' ability to live in smaller spaces and their lower care costs relative to those of dogs.

Strength in cat product sales can cushion softness in the dog space. As Chewy CEO Sumit Singh put it on an earnings call this month: "Dog seems to be worsening; cat seems to be strengthening."

Here are some stories to bookmark for the weekend:

• Texas turning blue may hinge on Democrats harnessing data center opposition
• Activist Toms Capital urges Devon Energy in letter to explore alternatives, including a sale
• The 'robot relations' department may become reality in workplace of the future
• Peloton is revamping its treadmills with new features in the next phase of its turnaround
• Trump discloses more than 1,100 July trades, including up to $25 million each in sales of Microsoft, Amazon
• Warsh’s regime change at the Fed pushes ahead – and meets resistance

— CNBC's Sean Conlon, Matt Peterson, Diana Olick, Sarah Agostino, Garrett Downs, Spencer Kimball, Elsa Ohlen, Annika Kim Constantino, Jonathan Vanian and Catriona Marangi contributed to this report.

Josephine Rozzelle edited this edition.