Trump picks Warsh, Apple earnings, the software bear market and more in Morning Squawk

In a significant announcement this morning, President Donald Trump has chosen former Federal Reserve Governor Kevin Warsh to be the next chairman of the U.S. central bank. Trump expressed strong confidence in Warsh's capabilities, stating, "I have known Kevin for a long time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best." While Warsh's nomination is expected to be well-received due to his extensive experience, it will still require Senate confirmation, which could be complicated by Republican Senator Thom Tillis's vow to block any Fed nominees until the ongoing investigation into current Fed Chair Jerome Powell concludes. In market news, stock futures are trending lower after the S&P 500 experienced minor losses for the second consecutive day. The iShares Expanded Tech-Software Sector ETF (IVG) had its worst performance since April, primarily influenced by disappointing earnings reports from companies like ServiceNow and Microsoft. This downturn has officially placed the software industry into bear market territory, with the fund down approximately 22% from its recent peak. On the legislative front, Trump endorsed a Senate deal aimed at funding most government operations through the end of the fiscal year. This deal, which is crucial to prevent a partial government shutdown set for early Saturday morning, includes provisions to fund various departments such as Education, Defense, and Treasury. However, the Department of Homeland Security was notably excluded after some lawmakers raised concerns regarding federal immigration actions. In corporate news, Apple surpassed Wall Street's expectations in its fiscal fourth quarter results, with impressive growth in iPhone revenue, which rose 23% year-over-year. However, the tech giant fell short on some product and services forecasts. During an interview, CEO Tim Cook highlighted the overwhelming demand for iPhones, while also noting that sales could have been even higher if not for chip supply constraints. Additionally, Apple confirmed its acquisition of Israeli AI startup Q.ai, although the financial details of the deal were not disclosed. Looking ahead, there are whispers of a potential major investment from Amazon, reportedly in discussions to invest up to $50 billion in OpenAI. This move would be significant, especially considering Amazon's prior investments in Anthropic, a competitor of OpenAI. As discussions continue, the final investment amount remains uncertain. This week has been eventful, with numerous developments across the financial and technological landscapes. Investors are advised to stay alert as the situation evolves.