Retail earnings, the new AI leaders, Amazon's $50 billion investment and more in Morning Squawk

In the latest edition of CNBC's Morning Squawk newsletter, investors are presented with critical insights to kick-start their trading day. Major retail companies have released earnings reports, providing a fresh perspective on consumer behavior just before the upcoming Black Friday shopping frenzy. These updates follow an earlier wave of earnings disclosures from the retail sector. The artificial intelligence sector saw a significant resurgence yesterday, marked by some unexpected frontrunners. The Nasdaq Composite, heavily influenced by technology stocks, surged by 2.7%, achieving its most impressive performance since May. Broadcom played a leading role, soaring over 11% after announcing a partnership with Alphabet to develop application-specific chips. Alphabet also enjoyed a notable boost, climbing more than 6% as investors expressed optimism regarding the company’s advancements in AI. In contrast, Nvidia experienced a downturn, with its shares dropping more than 4% in after-hours trading. This decline came after reports indicated that Meta is contemplating the use of Google-manufactured chips for its data centers in 2027. Meanwhile, Alphabet’s stock saw a gain of approximately 4% this morning. In legal news, U.S. District Judge Cameron Currie dismissed criminal cases against former FBI Director James Comey and New York Attorney General Letitia James. The judge ruled that the appointments of the interim U.S. attorney responsible for the indictments were invalid. The cases were dismissed without prejudice, leaving the door open for future charges. This decision is viewed as a setback for former President Donald Trump, who had urged action against his political adversaries. A White House spokesperson indicated that this ruling is not the final say on the issue. Amazon has made headlines with its ambitious plans to invest heavily in AI infrastructure. The e-commerce giant announced a forthcoming project aimed at enhancing its cloud services for U.S. government clients, with an anticipated launch in 2026. This initiative is set to add nearly 1.3 gigawatts of capacity, giving government users access to advanced AI models from Anthropic, Nvidia chips, and Amazon's proprietary technology. Additionally, Amazon is rolling out trials for its newly branded internet-from-space service, Leo, formerly known as Project Kuiper. This service is positioned to compete directly with SpaceX's Starlink. On another note, CNBC’s latest NHL team valuations reveal that the average franchise value has surged by 15% to $2.2 billion, largely fueled by lucrative media rights agreements. The Toronto Maple Leafs continue to lead the pack with a valuation of $4.3 billion, reflecting an 8% increase from the previous year, while the New York Rangers follow closely at $4.8 billion, up 9% year-over-year. In Wisconsin, Microsoft has decided to abandon its plan for a data center in Caledonia due to strong community opposition, prompting the tech giant to seek alternative locations. This development was detailed by CNBC’s Jordan Novet. Stay tuned for more updates as the market unfolds.