U.S. stock futures are pointing lower after markets were closed for Labor Day yesterday; a federal appeals court rules many of President Donald Trump's tariffs are illegal; Kraft Heinz (KHC) says it will split into two; Nestlé dismisses its CEO after finding he had a romantic relationship with a subordinate; and Spirit Airlines files for bankruptcy for a second time in less than a year. Here's what investors need to know today.
1. US Stock Futures Point Lower After Labor Day
U.S. stock futures are pointing lower following Labor Day after major indexes rose for a fourth straight month in August. Futures associated with the Nasdaq, S&P 500, and Dow Jones Industrial Average are down 1%, 0.8%, and 0.6%, respectively after all three indexes fell Friday to end a positive month on a down note. Gold futures are trading at more than $3,550 after the precious metal soared to a record high. Bitcoin (BTCUSD) is moving higher to trade at around $110,000. The yields on the 10-year Treasury note also is higher, while oil futures are up nearly 3%.
2. Federal Appeals Court Strikes Down Most Trump Tariffs
A federal appeals court on Friday ruled that most of President Donald Trump's “reciprocal” tariffs were not supported by current law, raising questions over whether the import levies will remain in place. The U.S. Court of Appeals for the Federal Circuit held in a 7-4 ruling that Trump didn't have the legal authority to impose the tariffs. “The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution,” the ruling said. In a post on his Truth Social network, Trump called the court “Highly Partisan,” and said that the Supreme Court would ultimately rule on the issue.
3. Kraft Heinz to Split Into Two
Kraft Heinz (KHC) announced Tuesday it will split into two, essentially undoing a merger from a decade ago. One of the post-split companies will feature the Heinz, Philadelphia, and Kraft Mac & Cheese brands and include products that combined for $15.4 billion in 2024 sales. The other will include Oscar Mayer, Kraft Singles, and Lunchables brand products, and had $10.4 billion in 2024 sales. The new companies' names will be announced later. Kraft Heinz shares, which entered the day down 9% this year, are edging higher in premarket trading.
4. Nestlé Fires CEO for Romantic Relationship With Subordinate
Nestlé on Monday dismissed CEO Laurent Freixe after only a year on the job following “an investigation into an undisclosed romantic relationship with a direct subordinate” that breached its Code of Business Conduct. Freixe, a company veteran, was appointed last year to replace CEO Mark Schneider as the maker of Toll House cookies and Nespresso coffee struggled with slowing sales. The Swiss company tapped Philipp Navratil, the head of Nestlé's Nespresso division, to succeed Freixe.
5. Spirit Airlines Files for Bankruptcy Again
Spirit Airlines announced late Friday it was filing for Chapter 11 bankruptcy for the second time in the past year, raising worries that the struggling budget carrier could soon end operations. Spirit, which previously filed for bankruptcy last November, recently had warned that it could run out of money within the next 12 months. The Spirit Aviation Holdings (FLYY) unit said that it plans to keep operating as usual during the restructuring process, and allow passengers to book trips and use their tickets, credits, and loyalty points.
