Trump fires Fed’s Cook, Musk sues Apple and OpenAI, Netflix’s theatrical run and more in Morning Squawk

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Here are five key things investors need to know to start the trading day:

In an unprecedented move, President Donald Trump said he is firing Federal Reserve Governor Lisa Cook. The move marks a major escalation of the president’s pressure campaign on the central bank as he lobbies for lower interest rates.

Here’s what to know:

• In a letter posted to Truth Social last night, Trump cited allegations that Cook made false statements on applications for home mortgages.
• Cook and her lawyer vowed to challenge her termination. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said in a statement.
• The president can only fire a Fed governor “for cause,” though the relevant law doesn’t expand on what that constitutes. Trump’s decision could be challenged in federal courts and eventually reach the Supreme Court.
• This move comes as Trump continues to push the central bank to cut interest rates. He has previously floated firing Fed Chair Jerome Powell.
• The U.S. Treasury’s yield curve steepened Tuesday morning following the announcement.
• Follow live market updates here.

Breaking news this morning: Eli Lilly said its daily weight loss pill helped patients with obesity and Type 2 diabetes lose weight in a late-stage trial. With the positive results, the pharma giant has the clinical trial data it needs to submit for regulatory approval.

It’s the latest milestone for the drug, called orforglipron, which could become a needle-free alternative in the booming GLP-1 market, CNBC’s Annika Kim Constantino reports. CEO David Ricks said earlier this month that the Eli Lilly plans to launch the pill globally “this time next year.”

Shares of Eli Lilly rose about 2% before the bell.

Elon Musk is taking his beef with OpenAI and Apple to court.

Musk’s artificial intelligence startup xAI sued the two companies yesterday over what it alleged is an “anticompetitive scheme” to hurt their competitors in the AI space. The move marks an escalation of Musk’s public feud with both companies after he claimed last week that Apple prioritizes OpenAI in its App Store rankings.

Speaking of Musk and xAI, CNBC’s Lora Kolodny reported yesterday that the company quietly dropped its benefit corporation status.

Netflix released a sing-along version of its popular movie “KPop Demon Hunters” in theaters over the weekend. While the streamer doesn’t report official box office numbers, industry analysts estimated a sizable haul from the two-day theatrical run, CNBC’s Sarah Whitten reports.

But industry followers are doubtful that the box office buzz will lead to a strategy shift toward theatrical releases for Netflix. CNBC Pro subscribers can hear directly from Wall Street analysts about whether the animated film will become the streamer’s next big franchise.

As this year’s U.S. Open kicks into high gear, tennis legend Billie Jean King sat down with CNBC’s Alex Sherman to discuss the everything from the state of women’s sports, to the experience of aging, and even her thoughts on pickleball.

Click here for the full interview and an accompanying recap.

— CNBC’s Alex Sherman, Ali McCadden, Sean Conlon, Erin Doherty and Jeff Cox contributed to this report.