Coach and Michale Kors bags.
- A federal judge has blocked the proposed merger of Tapestry-owned Coach and Capri parent Michael Kors.
- Tesla stock had its best day since 2013.
- Microsoft CEO Satya Nadella asked for a reduction in the cash incentive portion of his pay but still saw his total compensation rise sharply.
Here are five key things investors need to know to start the trading day:
1. Gains and losses
The S&P 500 staged a comeback Thursday, posting its first positive day this week and snapping a three-day losing streak. The index added 0.21%, while the tech-heavy Nasdaq Composite rose 0.76%. The Dow Jones Industrial Average didn't fare as well, losing 140.59 points, or 0.33%, for its first four-day losing streak since June. Treasury yields moved lower, easing back slightly after hitting three-month highs on Wednesday. Follow live market updates.
2. Tapes-try again
Coach owner Tapestry's proposed acquisition of Michael Kors parent Capri is not in the bag. A federal judge on Thursday blocked the $8.5 billion merger, which would have united two of America's biggest luxury houses, home to names such as Kate Spade, Versace and Jimmy Choo. Tapestry said it wasn't giving up and would appeal the order. The judge's reasoning wasn't immediately clear, but the move followed a brief trial last month in New York, where the FTC argued the proposed union would hurt competition, lead to higher prices and reduce employee benefits. After the order was released, shares of Capri plunged about 50%, while Tapestry's stock rose 10%.
3. Tesla stock gets a lift
Tesla is partying like it's 2013. The company's stock saw its best day since May 2013 on Thursday, surging 22% to close at $260.48. The rally came a day after the company reported better-than-expected earnings and CEO Elon Musk predicted vehicle growth that surpassed analyst expectations. The rally, which was the electric vehicle maker's second-best day ever on the stock market, lifted Musk's net worth by roughly another $26 billion.
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4. Microsoft CEO pay
Microsoft CEO Satya Nadella asked for a pay reduction, but still saw his total compensation increase 63%, or more than $30 million, for fiscal 2024. He received $79.1 million for the fiscal year that ended June 30, according to a proxy filing, but most of his compensation is in stock. Nadella had requested that the cash portion of his compensation be lowered to reflect security issues after a series of cyberattacks prompted criticism from the U.S. government. The company is also considering how rank-and-file employees are contributing to security efforts for their compensation.
5. Pulling onions
Burger King and Taco Bell are removing onions from some restaurants after an E. coli outbreak was linked to Quarter Pounders at McDonald's. The move comes after restaurant supplier U.S. Foods, which does not service McDonald's restaurants, issued a recall notification on Wednesday for four onion products produced by Taylor Farms. Restaurant Brands International, the parent company of Burger King, said it would pull onions from 5% of its U.S. restaurants after determining they came from the Colorado facility at the center of the Taylor Farms recall. Taco Bell owner Yum Brands did not disclose the number of restaurants affected by its decision.
Money Report
— CNBC's Pia Singh, Gabrielle Fonrouge, Jacob Pramuk, Lora Kolodny, CJ Haddad, Ari Levy, Jordan Novet and Amelia Lucas contributed to this report.
