Palantir earnings, Pizza Hut’s options, a new consumer staples giant and more in Morning Squawk

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

Tech earnings continued yesterday with Palantir Technologies, which beat Wall Street’s expectations on the top and bottom lines for the third quarter. The company also issued better-than-expected guidance for its current quarter.

Here’s what to know:

• Palantir, which provides analytics tools to other firms and government agencies, credited much of its strong performance to artificial intelligence.
• The company said it expects to bring in $1.33 billion in revenue in the fourth quarter — an optimistic forecast despite the ongoing government shutdown that could jeopardize some of Palantir’s contracts. Analysts expected fourth-quarter revenue of $1.19 billion, according to LSEG.
• The stock initially rose following the report but has since given up those gains, dropping more than 7% in extended trading. Shares of Palantir have risen 25-fold in the past three years and are up 170% this year alone.
• CEO Alex Karp used the company’s earnings call to dismiss his critics, saying, “Enjoy, get some popcorn, they’re crying.” Karp also discussed fentanyl overdoses in the U.S., as well as Palantir’s controversial deal to build software for U.S. Immigration and Customs Enforcement (ICE).
• Elsewhere in tech, shares of Amazon closed at a record high yesterday after the company announced a $38 billion deal with OpenAI. Monday’s gains put the stock up 14% in just the last two sessions.
• Shares of Uber are down 4% before the bell after the ridesharing company beat revenue expectations for the third quarter.
• Follow live market updates here.

Pizza Hut’s parent company announced this morning that it will explore strategic options for the chain, indicating a sale could be on the table.

Yum Brands, which also owns KFC and Taco Bell, did not set a deadline for the review process. CEO Chris Turner said in a statement: “Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands.” As CNBC’s Amelia Lucas reports, the chain has seen sales slump after a pandemic-era boom.

Yum also reported third-quarter earnings this morning, narrowly beating analysts’ revenue expectations. It’s the latest consumer company to share results for the period, and as CNBC’s Laya Neelakandan notes, the reports are increasingly painting the picture of a “K-shaped” economy.

There might soon be a new giant in the consumer staples market. Kimberly-Clark announced yesterday it is buying Kenvue in a $48.7 billion deal that could bring household names like Huggies, Kleenex, Band-Aid and Neutrogena all under one roof. News of the deal — which would be one of the largest acquisitions on Wall Street this year — sent shares of Kimberly-Clark dropping 14%, while shares of Kenvue surged 12%.

If the name Kenvue sounds familiar, that’s likely because the Tylenol maker was thrust into the spotlight last month when President Donald Trump made unfounded claims linking acetaminophen use during pregnancy to increased autism risk. Kimberly-Clark CEO Mike Hsu told CNBC’s Jim Cramer that Tylenol sales have “seen a little bit of impact, but less than you would think” following Trump’s comments, calling the brand “resilient.”

The Trump administration said yesterday that it would use contingency funds to pay 50% of SNAP benefits during the month of November. A Rhode Island judge on Friday told the administration it could not stop paying the benefits during the government shutdown, which is set to tie the record for the longest shutdown in history tonight.

Meanwhile, in Boston federal court, nearly two dozen state attorneys general sued the Trump administration over its new rule that limits eligibility for the Public Service Loan Forgiveness program. The rule narrows what counts as a “qualifying employer” for the program, excluding organizations “that engage in unlawful activities,” the Education Department said in a statement.

As it looks to turn around its weak China sales, Starbucks announced yesterday that it is forming a joint venture with Boyu Capital, in which the alternative asset management firm will run the coffee chain’s China business. The $4 billion deal is expected to close in the second quarter of the 2026 fiscal year. Boyu will hold up to a 60% stake in the joint venture, while Starbucks will have a 40% stake.

The coffee chain’s China business — which it values at more than $13 billion — has struggled in recent years, thanks to the pandemic and intense competition. Hoping to compete with the likes of Luckin Coffee, Starbucks has offered discounts at its China stores, which has pushed down the average ticket price and the company’s profits.

Stellantis is making a $13 billion bet in the U.S. Here’s why the Jeep and Ram parent is hoping the investment sparks a turnaround for the automaker.

— CNBC’s Samantha Subin, MacKenzie Sigalos, Amelia Lucas, Laya Neelakandan, Annika Kim Constantino, Sara Salinas, Dan Mangan, Annie Nova and Robert Ferris contributed to this report. Terri Cullen edited this edition.