Fed’s Cook resists Trump firing, EchoStar skyrockets after deal: Morning Buzz

Stocks are mixed and little changed at midday amid heightened concerns over the Federal Reserve’s independence after President Trump ordered the removal of Fed Governor Lisa Cook. After Trump posted a letter to his social media site indicating that he is firing Cook over allegations of false statements on two mortgage agreements, lawyers for the Governor said a lawsuit will be filed to contest the purported termination. Longer-dated Treasury yields have climbed as bond markets grapple with the political interference risk, making for a bit more cautious sentiment across financial markets.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists, compiled by The Fly, and subscribe to the daily Fly By on YouTube to know how the markets will open, which stocks will be moving and why.  

1. STOCK NEWS:

• AT&T (T) agreed to purchase certain wireless spectrum licenses from EchoStar (SATS) for a total of about $23B
• AMD (AMD) advanced after the company and IBM (IBM) announced a quantum-centric supercomputing partnership and the chip stock was upgraded to Buy at Truist
• Eli Lilly (LLY) reported that all three doses of weight loss pill orforglipron met the primary and all key secondary endpoints in a Phase 3 trial
• Canadian Pacific Kansas City (CP) said that the company is not interested in participating in immediate rail industry consolidation
• Commerce Secretary Howard Lutnick suggested the government is looking at taking potential stakes in defense companies after an unorthodox deal that leaves the U.S. holding a 10% share in chipmaker Intel (INTC)

2. WALL STREET CALLS:

• Domo (DOMO) upgraded to Buy from Hold at TD Cowen
• Constellation Brands (STZ) downgraded to Underperform at BofA
• New Street downgraded PDD (PDD) on lack of estimate upside
• BofA started Oklo (OKLO) with a Buy, sees 30% upside potential
• Arete upgraded Qualcomm (QCOM) to Buy

3. AROUND THE WEB:

• The financiers who led a high-profile activist campaign at the New York Times (NYT) three years ago have now taken a stake in the newspaper company via their new investment firm, Bloomberg reports
• Stellantis (STLA) has decided to shelve its Level 3 advanced driver-assistance program due to high costs, tech challenges, and worries over consumer demand, Reuters reports
• Norway’s sovereign-wealth fund decided to sell its holdings in Caterpillar (CAT) and five Israeli banks, WSJ says
• Ryanair (RYAAY) and Booking.com (BKNG) have agreed to conclude a legal appeal taken by the airline in the U.S. over allegations the online travel giant was screen-scraping Ryanair’s fares without permission, Irish Independent reports
• Papa John’s (PZZA) plans to return to India by October, with plans to open 650 stores by 2035, Reuters says

4. MOVERS:

• Ranpak (PACK) gains after announcing a major expansion of its relationship with Walmart (WMT)
• Energy Fuels (UUUU) increases after signing an MOU with Vulcan Elements to advance rare earth magnet security
• Centrus Energy (LEU) higher after signing an agreement with KHNP and POSCO
• Ecarx (ECX) falls in New York after reporting quarterly results
• Navitas Semiconductor (NVTS) lower after announcing CEO Gene Sheridan will step down

5. EARNINGS/GUIDANCE:

• Semtech (SMTC) reported Q2 results, with CEO Hong Hou commenting, “Our second quarter results reflect strong year-over-year financial performance”
• Bank of Montreal (BMO) reported Q3 results, with EPS and revenue higher year-over-year
• KE Holdings (BEKE) reported Q2 results, with EPS beating consensus
• Atour Lifestyle (ATAT) reported Q2 results and provided guidance for FY25
• Scotiabank (BNS) reported Q3 results, with EPS and revenue higher year-over-year

INDEXES:

Near midday, the Dow was down 0.02%, or 10.52, to 45,271.95, the Nasdaq was up 0.12%, or 25.96, to 21,475.25, and the S&P 500 was up 0.04%, or 2.47, to 6,441.79.