Tariffs in doubt, Musk's pay plan, shutdown flight reductions and more in Morning Squawk

In today’s investor briefing, critical developments are emerging that could significantly impact market dynamics. The U.S. Supreme Court is currently deliberating over the legality of President Donald Trump's tariffs, with justices expressing skepticism during oral arguments. This case could have lasting implications for the nation's trade policies. Tesla is gearing up for its annual shareholder meeting where a highly anticipated decision awaits. Investors will vote on a compensation package for CEO Elon Musk, which could be valued at nearly $975 billion contingent on the company achieving specific milestones. Despite expectations that the proposal will pass, notable shareholders, including Norway’s sovereign wealth fund, have announced their intention to oppose the plan. In the aviation sector, Transportation Secretary Sean Duffy has announced a 10% reduction in flight capacity at 40 major airports, effective Friday. This decision, prompted by concerns over air traffic control staffing shortages linked to the ongoing government shutdown, could lead to cancellations affecting thousands of flights daily. Recovery from these disruptions is anticipated to take weeks, even once the shutdown is resolved. Meanwhile, Snap Inc. has seen a nearly 20% surge in its stock price after outperforming expectations for third-quarter revenue and revealing a significant partnership with AI startup Perplexity AI, set to enhance its Snapchat platform. Conversely, Pinterest faced a steep decline of over 20% following a disappointing earnings report and lackluster guidance. Additionally, Warner Bros. Discovery reported disappointing financial results, falling short of Wall Street expectations with an adjusted loss and a revenue of $9.05 billion. As the company navigates potential restructuring options, reports indicate a possible acquisition offer from Paramount Skydance, which aims to capitalize on WBD’s current challenges. Investors should remain vigilant as these developments unfold, influencing market conditions and investment strategies.