Trump’s State of the Union, Lowe’s earnings, Panera Bread’s value menu and more in Morning Squawk

President Donald Trump touted his economic record during his State of the Union address last night, saying the U.S. economy is “roaring like never before” — despite polls that show many Americans are feeling the opposite. The speech clocked in at 107 minutes, the longest-ever State of the Union address.

Here’s what to know:

• Trump said last night that he believes tariffs could replace income tax, just days after the Supreme Court ruled that many of the duties are illegal.
• The president also plugged parts of his health care plan, announced a new government-backed 401(k) initiative and called on Congress support his proposal hindering corporations from buying homes.
• Trump’s concentration on affordability in his largely domestic-focused speech earned him praise from Republicans, who are hoping to retain control of Congress in November’s midterm elections.
• In a rare moment of bipartisan applause, Trump called for a ban on congressional stock trading.
• He also announced that technology companies have pledged to provide their own power for AI data centers. The massive facilities have been blamed by communities across the U.S. for rising electricity prices.
• Catch up on all the biggest moments here.

Lowe’s surpassed Wall Street’s fourth-quarter expectations for earnings and revenue this morning, reporting more than 10% quarterly sales growth from the same time a year ago.

But the positive results were overshadowed by the home improvement retailer’s weaker-than-expected earnings outlook for the full year. Shares of Lowe’s slipped around 3% in premarket trading this morning.

A crop of technology earnings reports are due after the bell. The headliner is Nvidia, whose results will come amid mounting skepticism on the Street about AI.

Warner Bros. Discovery announced yesterday that Paramount Skydance upped its takeover offer to $31 per share. WBD said the new proposal, which its board would review, could “reasonably be expected” to beat out the media giant’s current deal with Netflix.

Paramount’s new offer is all cash and includes a $7 billion breakup fee if the merger does not receive regulatory approval, according to WBD. Paramount also agreed to cover the $2.8 billion owed to Netflix if WBD backs out of its existing deal with the streaming giant.

Paramount CEO David Ellison has been vying for WBD for nearly half of a year. As CNBC’s Sarah Whitten reports, acquiring the media company could help improve Paramount’s lackluster box office record under Ellison’s leadership.

Panera Bread is hopping on the value meal bandwagon.

The company announced a “Mix & Match” deal this morning in a bid to lure back money-conscious consumers. Panera’s new value options come as a number of restaurant chains, including McDonald’s and Taco Bell, promote low-cost menu items. As CNBC’s Amelia Lucas notes, affordability has been a key part of Panera’s turnaround plan under CEO Paul Carbone.

Meanwhile, shares of fellow fast-casual chain Cava surged nearly 10% in extended trading after the company beat analyst expectations on both lines for the fourth quarter. The Mediterranean chain also reported unexpected growth in same-store sales and said full-year revenue topped $1 billion for the first time.

— CNBC’s Garrett Downs, Spencer Kimball, Dan Mangan, Kevin Breuninger, Evelyn Cheng, Ashley Capoot, Annie Palmer, Sean Conlon, Alex Sherman, Sarah Whitten, Amelia Lucas, Laya Neelakandan and Hugh Son contributed to this report. Josephine Rozzelle edited this edition.