U.S. strikes continue, GM earnings, the latest on cyclosporiasis and more in Morning Squawk

Happy Tuesday. JetBlue won the LaGuardia Airport slots left open by Spirit Airlines. I’ll be keeping an eye on whether it also moves to the airport’s Art Deco-style Marine Air Terminal, which I’ve visited many times for Spirit flights.

Stock futures are rising this morning. The market is coming off a down day.

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

The U.S. continued attacking Iran for a 10th straight night yesterday after President Donald Trump promised retaliation for the deaths of U.S. service members killed in the conflict. Stocks didn’t appear to be overly jolted by the fighting, but other areas of the market are flashing warning signs.

Here’s what to know:

• Iran’s Islamic Revolutionary Guard Corps said this morning that it struck Amazon‘s infrastructure in Bahrain with missiles. CNBC could not independently verify the claim.
• On Monday, Iran’s Houthi allies announced a maritime embargo against Saudi Arabia, a move that could worsen the oil supply disruption caused by Iranian attacks on ships in the Strait of Hormuz.
• Mediators are reportedly pushing for the U.S. and Iran to agree to a 10-day ceasefire. Still, oil prices are higher this morning, adding to Monday’s gains.
• All three major indexes closed yesterday’s session lower, though the S&P 500 only saw a modest decline.
• Meanwhile, Trump administration officials announced yesterday that the U.S. will impose new 50% tariffs on certain Canadian goods in response to alleged trade discrimination.
• Follow live market updates here.

Shares of General Motors are higher before the bell after the automaker beat expectations for the second quarter and raised its full-year forecast, citing strong North American sales. GM reported $3.57 in adjusted earnings per share on $48.03 billion in revenue, both more than Wall Street estimates.

In an interview with CNBC’s “Squawk Box” following the results, GM CFO Paul Jacobson said the company’s earnings per share for the first half was 25% higher than any other first half in its history. He also said GM’s “momentum is palpable.”

As CNBC’s Mike Wayland reports, the automaker hiked its forecast for full-year adjusted earnings before interest and taxes, as well as for adjusted automotive free cash flow. But GM lowered its forecast for net income attributable to stockholders for the second straight quarter.

CNBC confirmed yesterday that Chris Fall, the head of the Center for AI Standards and Innovation, resigned just three months after taking the role.

As CNBC’s Ashley Capoot notes, the exit creates further uncertainty around who is the White House’s point person for artificial intelligence as the Trump administration takes an increasingly hands-on role on the technology’s regulation. Arvind Raman, the director of National Institute of Standards and Technology, will step in as acting director of the center, according to a Commerce Department spokesperson.

Elsewhere in AI, Alphabet shares rose yesterday following a report that the Google parent is developing a new server chip referred to internally as “Frozen v2.” That comes ahead of Alphabet’s earnings scheduled for after the bell tomorrow.

The Paramount–Warner Bros. Discovery merger is officially on hold.

On Monday, a California judge approved a temporary restraining order on the deal following a lawsuit from a group of state attorneys general. The order pauses the $110 billion acquisition deal for 14 days.

A Paramount spokesperson said it is “confident the evidence will demonstrate that the State AGs’ antitrust arguments are without merit.” Warner Bros. declined to comment.

The Food and Drug Administration stood by its main conclusions about the origin of the cyclosporiasis outbreak yesterday after its announcement of a false positive test led to confusion.

The agency said late Sunday that its test of Taylor Farms de Mexico’s iceberg lettuce was a false positive for the parasite, but it still believes the outbreak stemmed from shredded iceberg lettuce supplied by Taylor Farms. The company said it will stick with its voluntary recall of the implicated lettuce from central Mexico, and regulators continue to advise consumers not to eat recalled iceberg lettuce.

Taco Bell, meanwhile, is removing the suspected lettuce from its restaurants in affected states. The fast-food chain’s traffic on Friday was 19% lower than its Friday average so far this year, according to Placer.ai data.