Palantir’s profits, Pizza Hut’s choices, a new leader in consumer goods and additional updates in the morning report.

Here’s the Morning Squawk newsletter from CNBC.

Let’s dive into five key points for investors as they kick off their trading day.

Technology firms continue to post solid earnings, with Palantir Technologies outperforming Wall Street expectations for third-quarter sales and profits. The company also provided a more optimistic outlook for the current quarter.

Here’s what you should know:

• Palantir has credited much of its success to advancements in artificial intelligence, particularly in providing analytical tools to government agencies and other businesses.
• The company predicts fourth-quarter revenue to reach $1.33 billion, which is ambitious given the ongoing government shutdown that might endanger some contracts. Analysts had forecasted about $1.19 billion instead.
• Although shares climbed initially in response, they later dropped over 7% in after-hours trading. Palantir’s stock has surged 25 times in the last three years and jumped by 170% this year alone.
• During an earnings call, CEO Alex Karp dismissed criticisms, urging skeptics to enjoy some popcorn as they voiced their concerns. He also touched on the U.S. fentanyl crisis and the contentious contract with the U.S. Immigration and Customs Enforcement (ICE).
• On another note, Amazon reached a record high following a $38 billion partnership with OpenAI. The stock has increased by 14% over just two trading sessions.
• Meanwhile, shares of Uber slid 4% prior to market opening, despite the company exceeding revenue estimates for the third quarter.
• Stay tuned for live updates on market movements.

Yum Brands, the parent company of Pizza Hut, has announced plans to consider strategic options, hinting at a potential sale. The CEO mentioned that Pizza Hut’s performance indicates a need for further steps that may be more effective outside the company.

Yum Brands also revealed third-quarter results today, just managing to surpass analysts’ revenue expectations. Recent reports depict a “K-shaped” economic recovery for consumer companies, as highlighted by CNBC’s Raya Neelakandan.

In consumer goods, a significant shift could be underway. Kimberly-Clark announced an acquisition deal worth $48.7 billion with Kenview, consolidating brands like Huggies and Kleenex under one name. After the announcement, Kimberly-Clark shares fell by 14%, while Kenview shares saw a jump of 12%.

Kenvue recently gained attention due to false claims made by former President Trump linking acetaminophen use during pregnancy with autism risks. Kimberly-Clark’s CEO mentioned that Tylenol sales have been impacted somewhat by these comments but they remain optimistic about the brand’s resilience.

The Trump administration declared that it will utilize reserve funds to ensure that 50% of SNAP benefits are distributed in November. A judge ruled that benefit payments cannot be halted due to the ongoing government shutdown, which is on track to become one of the longest in history.

Simultaneously, nearly 20 state attorneys general have filed a lawsuit against the administration in Boston over new regulations that limit eligibility for the Public Service Loan Forgiveness Program.

To combat slow sales in China, Starbucks announced a joint venture with Boyu Capital to manage its operations in the region. The $4 billion deal is expected to close by the second quarter of fiscal 2026, with Starbucks holding a 40% stake and Boyu 60%.

Starbucks’ operations in China have been valued at over $13 billion but have struggled due to pandemic impacts and competitive pressure. The company is currently offering discounts to remain competitive against rivals like Luckin Coffee.