Inflation cools, Morgan Stanley earnings, IBM's bad day and more in Morning Squawk

In today's financial landscape, notable shifts are taking center stage as the market reacts to recent economic data and corporate performances. Stock futures are on the rise this morning following a positive trading day on Wall Street, suggesting optimism among investors. Recent government reports indicate a cooling in energy prices for June, contributing to a decrease in overall inflation. However, prices remain elevated compared to last year and are expected to face further upward pressure due to ongoing tensions between the U.S. and Iran over the Strait of Hormuz. While the broader market experienced gains, IBM faced a significant setback, with its stock plummeting 25% — marking the steepest decline in its history. The tech giant disclosed disappointing preliminary results for the second quarter, reporting $2.93 in adjusted earnings per share against a revenue of $17.2 billion. This fell short of analysts' expectations of $3.01 per share and $17.86 billion in revenue. CEO Arvind Krishna attributed the decline to a shift in client spending priorities toward memory chips and hardware instead of software and infrastructure. In contrast, cybersecurity stocks surged as Krishna highlighted increasing cyber threats as a primary concern for customers. Notable players like CrowdStrike, Okta, and Netskope saw their shares rise significantly during Tuesday's trading session. Morgan Stanley, on the other hand, continued the trend of robust earnings reported by major banks, unveiling record quarterly revenue and profits. The bank's earnings per share reached $3.46 on $21.35 billion in revenue, surpassing Wall Street's forecasts of $2.94 and $19.64 billion respectively. The surge in revenue from its equities trading business, which saw a nearly 70% increase, was attributed to the ongoing boom in artificial intelligence, which is also propelling trading and deal-making activities at firms like Goldman Sachs and JPMorgan Chase. Goldman CEO David Solomon remarked that we are in the midst of an 'AI capex super cycle.' In philanthropic news, billionaire investor Warren Buffett is significantly increasing his donations, announcing he plans to give nearly $6 billion to four family-affiliated foundations. He aims to distribute his shares of Berkshire Hathaway over the next eight years, notably excluding the Gates Foundation from this year's contributions. Buffett commented on the 'distasteful' connections between Bill Gates and the late Jeffrey Epstein but acknowledged that everyone makes mistakes. In a bid to enhance the travel experience, United Airlines is betting on travelers' willingness to pay more for comfort by introducing rows on its A321XLRs that feature an empty middle seat. While the pricing for these seats remains undisclosed, this initiative reflects airlines' ongoing efforts to capture higher-income travelers through premium offerings. Lastly, the Supreme Court is advocating for a nearly 10% budget increase for the fiscal year 2027 to bolster security measures amid rising threats, as Justice Elena Kagan addressed a House subcommittee yesterday. Stay tuned for more updates as these developments unfold in the financial markets.