5 things to know before markets open on Wednesday

President Donald Trump touted his economic performance in last night’s State of the Union address, saying the U.S. economy is “stronger than ever” despite polls showing many Americans feel the opposite. His speech lasted 107 minutes, making it the longest State of the Union address in history.

Here’s what you need to know:

Days after the Supreme Court ruled that many of the tariffs were illegal, President Trump said last night that he believed tariffs could replace income taxes. The president also called on Congress to support a plan that would suspend some health insurance plans, announce a new government-backed 401(k) initiative, and block companies from buying homes. Trump’s focus on affordability in a largely domestically focused speech drew praise from Republicans who want to maintain control of Congress in November’s midterm elections. In a rare moment of bipartisan applause, President Trump called for a ban on Congressional stock trading. It also announced that technology companies have pledged to provide their own power to AI data centers. The massive facility has been blamed by communities across the country for soaring electricity bills. Catch up on all the biggest moments here.

lowe’s This morning, the company beat Wall Street’s fourth-quarter profit and revenue expectations, reporting a more than 10% increase in quarterly sales compared to the same period last year.

However, the strong results were overshadowed by the home improvement retailer’s full-year earnings forecast that was lower than expected. Lowe’s stock fell about 3% in premarket trading this morning.

A flurry of technology earnings reports will be released after the bell. The headliner is Nvidiathe results will be announced amidst street skepticism towards AI.

warner bros discovery announced yesterday paramount skydance The company raised its offer to $31 per share. WBD said any new proposals considered by the board could be “reasonably expected” to break its current contract with the media giant. Netflix.

Paramount’s new offer is all-cash and includes a $7 billion breakup fee if the merger does not receive regulatory approval, WBD said. Paramount also agreed to cover the $2.8 billion it owes Netflix if WBD backs out of its existing contract with the streaming giant.

Paramount CEO David Ellison has been fighting for WBD for about six months. As CNBC’s Sarah Witten reports, the acquisition of the media company could help improve Paramount’s lackluster box office performance under Ellison’s leadership.

Panera Bread is jumping on the value meal bandwagon.

The company this morning announced “mix and match” deals to lure back money-conscious consumers. Panera’s new value options come as many restaurant chains including: mcdonalds and Taco Bell promote low-priced menu items. As CNBC’s Amelia Lucas points out, affordability has been a key part of Panera’s turnaround plan under CEO Paul Carbone.

Meanwhile, the stock price of the same fast-casual chain is kava Shares rose nearly 10% in after-hours trading after the company beat analysts’ expectations in both quarters. The Mediterranean chain also announced unexpected same-store sales growth, with full-year sales exceeding $1 billion for the first time.

—CNBC’s Garrett Downs, Spencer Kimball, Dan Mangan, Kevin Bruninger, Evelyn Chen, Ashley Caputo, Annie Palmer, Sean Conlon, Alex Sherman, Sarah Witten, Amelia Lucas, Raya Neelakandan and Hugh Song contributed to this report. Josephine Rozzelle edited this version.