Happy Friday. Don't miss Federal Communications Commission Chairman Brendan Carr on "Squawk on the Street" at 11 a.m. ET. Watch live on CNBC or CNBC+.
Stock futures are higher this morning following a losing day for the S&P 500.
Here are five key things investors need to know to start the trading day:
1. Open questions
OpenAI told investors that its annualized revenue at the end of September was roughly $18 billion shy of what was previously reported, CNBC confirmed yesterday. The news from one of the most dominant players in the artificial intelligence ecosystem led stocks across the tech sector to slide.
Here's what to know:
- As CNBC's Ashley Capoot and Kate Rooney write, the new details on OpenAI's revenue come as the company faces pressure to justify its enormous valuation ahead of its potential IPO.
- Shares of CoreWeave sank nearly 8%, shares of Oracle dropped almost 6% and Nvidia shares fell 3% following the news. Advanced Micro Devices, Broadcom, Intel and Super Micro Computer also all closed lower.
- The drop in AI names pushed the technology-heavy Nasdaq Composite down more than 1%, its worst day since mid-August. The index is still close to record levels after hitting fresh all-time highs earlier this week.
- SpaceX is a bright spot for the tech sector this morning. Shares of the company are climbing after it announced a deal to purchase a nationwide spectrum portfolio as it looks to take on the U.S. telecommunications market.
- Follow live market updates here.
2. Political calendar
President Donald Trump said yesterday that the U.S. would not attack Iran before the midterm election on Nov. 3, writing in a post on Truth Social that the two countries were having "productive discussions."
As CNBC's Luke Fountain reports, the announcement marked a shift from Trump's comments a day prior, in which he said making a deal with Tehran was "not really something that I wanted to do." Trump said Thursday that the U.S. naval blockade of Iran's ports would "remain in full force and effect" and maintained that the country wouldn't be able to have a nuclear weapon.
Oil prices still finished yesterday's session higher.
3. Squeezed margins
Mom-and-pop investors are getting in on Wall Street's stock-borrowing surge. CNBC's Sean Conlon traveled to Houston, Texas to see how it changed one retail trader's life.
Hy Luu has turned to margin investing — the practice of borrowing from a broker to buy securities and using existing investments as collateral — to build out a concentrated Tesla position. When the stock tumbled in 2022, he refinanced the house he shares with his mother to pay down his balance.
Investors are reportedly borrowing record levels of money from brokerages to purchase securities. Experts warn that margin is a double-edged sword: While it can intensify gains, a falling asset can deepen losses seen by shareholders.
4. Turbulence
Delta Air Lines missed Wall Street's earnings estimates for the first time in two years this morning. The airline also cut its full-year profit outlook as high fuel prices from the Iran war continue to weigh on the industry.
Airfare prices were up more than 23% from the same time a year earlier, according to inflation data released in September, but Delta CEO Ed Bastian said higher fares haven't deterred travelers. "We're not seeing any slowdown at all. Our consumer is incredibly resilient," Bastian told CNBC's Phil LeBeau this morning.
Shares of the company are about 2% lower before the bell.
5. Chip off the old buck?
Burritos with a side of ... cold foam? Starbucks has reportedly explored buying Chipotle Mexican Grill, but Wall Street isn't certain it'd be a good deal.
As CNBC's Amelia Lucas writes, such an acquisition has the potential for synergies and could create a conglomerate like Yum Brands or Restaurant Brands International. But the price of the acquisition — and the fact that Starbucks is currently in the midst of a yearslong turnaround — are drawbacks. Don't forget that Starbucks CEO Brian Niccol joined the coffee chain in 2024 following six years at the helm of Chipotle.
Shares of Chipotle rose 6% yesterday following the report, while Starbucks pulled back.
The Daily Dividend
Here are some stories to bookmark heading into the weekend:
- Satya Nadella reinvented Microsoft once. Can he do it again in the AI era?
- Cocoa prices are climbing again — but this time is different
- Why deep-red Kansas has become an unexpected Senate battleground
- Modelo's owner is getting creative to bring back beer drinkers
- Supertanker chartered from Gulf Coast to China for $76 million, 10 times higher than pre-war level
- Why the MLB is proposing a shorter regular season
— CNBC's Kate Rooney, Ashley Capoot, Sean Conlon, Lora Kolodny, Luke Fountain, Spencer Kimball, Leslie Josephs and Amelia Lucas contributed to this report.
Caleigh Keating assisted in the production of this newsletter. Josephine Rozzelle edited this edition.