Markets: With oil prices volatile after a weekend of escalation between the US and Iran, stocks fell yesterday like the lip balm that didn’t quite make it all the way back into your pocket. Google, which is among the Big Tech companies reporting earnings this week, rose amid reports that it’s developing a new AI chip.

EXPLOSIVE (DIARRHEA) UPDATES

Justin Sullivan/Getty Images

The FDA said “lettuce get this right.” The agency retracted its claim that it had found the sickness-causing cyclospora parasite in a sample of Taylor Farms lettuce over the weekend, saying yesterday that the test was a false positive. But don’t go preparing that salad kit in your fridge just yet—the FDA still believes the company’s iceberg lettuce is linked to the multi-state outbreak.

Here’s what we know about the illness’s probable connection between the company whose clients include Walmart, Whole Foods, Costco, Taco Bell, and McDonald’s and the gastrointestinal ailment that’s got Americans straddling toilets in agony:

• Last week, the outbreak of explosive diarrhea (as if there’s any other kind) was linked to shredded lettuce from a single supplier to Taco Bell restaurants in five states.
• On Friday, Taylor Farms issued a voluntary recall of its iceberg lettuce grown in central Mexico that was sold between June 29 and July 16 across 27 states. The recall remains in place.
• Despite the false positive, the FDA clarified yesterday that, unlike the Titanic captain, it still considers the iceberg a serious problem. “FDA’s traceback investigation and outbreak data continue to converge on shredded iceberg lettuce from Taylor Farms locations in central Mexico,” the agency said in a statement.

In its own statement, Taylor Farms said that the FDA “apologized to us” for the false positive, noting that besides the lettuce from Mexico, “all other Taylor Farms products…are not involved in the recall.”

How did the false positive happen?

An expert told the Wall Street Journal that cyclospora is impossible to grow in a lab, making it harder to study and link to a common source because scientists can’t culture more of it to test.

Another scientist interviewed by MarketWatch said the complex nature of the pathogen could have resulted in the test detecting a similar organism.

More cases are likely coming: As of July 15, the FDA said there have been more than 1,600 confirmed cyclospora cases in the US and another 5,100+ it is working to confirm.—DL

      

Reader poll

Sponsored By Cytonics

Osteoarthritis is one of the world’s most common diseases, with over $560 billion spent managing its symptoms each year. But soon, its 500+ million patients* may be able to do more than that.

An emerging biotech company called Cytonics may have discovered what soon could be osteoarthritis’s first potential cure.

They successfully cleared phase 1 clinical trials with a perfect safety profile.** Now, Cytonics is gearing up for the next phase on a version engineered to be 200% more potent.

Potential medical breakthroughs like this are rare. Even rarer? You can invest in Cytonics as they prepare for the next phase.

But the opportunity to invest ends next week. Become a Cytonics shareholder before next week’s deadline.

World

Tour de headlines

Geoff Robins/Getty Images

🍁 Trump slaps an additional 50% tariff on many Canadian goods. In a significant escalation toward the US’ northern neighbor and second-largest trading partner, President Trump signed orders yesterday to impose the additional tariff on goods including wine, hockey sticks, plywood, furniture, and more. The duties, which are slated to take effect in 30 days, do not include exemptions for products covered under an existing trade pact between the US, Canada, and Mexico. The White House said the import taxes were retaliation for Canada’s unfair treatment of American exports, including alcohol and cars.

🇮🇷 Iran and the US continued to trade attacks as the Houthis open up a new front. The US and Iran attacked one another for a 10th day yesterday, with the Strait of Hormuz remaining a major point of contention. The US military said nearly 100 service members had been injured in the conflict in the past two weeks. And, after deadly attacks on US allies over the weekend that killed three American soldiers, President Trump said that when Iran kills US soldiers it will “will pay for that killing many times over.” Meanwhile, the Iran-backed Houthi militia threatened to blockade Saudi ships in the Red Sea, putting even more pressure on global energy markets. Meanwhile, Iran said mediators had reached out with a proposal for a new possible ceasefire.

⏸️ Judge presses pause on Paramount-WBD deal. In a twist Hollywood studios would clamor for if it didn’t hit their bottom line, a California federal judge yesterday granted a temporary restraining order that blocks Paramount Skydance from moving forward with its $110 billion purchase of Warner Bros. Discovery for 14 days. The ruling came in a challenge to the merger brought by 12 states that claim it violates antitrust laws. The judge will use the two-week delay to consider whether to halt the merger for longer as the case proceeds—but even the short pause is likely to delay the deal’s timeline.—AR

Hollywood Ending

Getty Images

Only the joy of seeing Penelope reunite with Odysseus on IMAX is equal to what AMC Theaters is feeling right now. The world’s biggest cinema chain posted record quarterly earnings yesterday after several recent blockbusters convinced people to return to the movies.

The overpriced popcorn purveyor reported that:

• Q2 revenue rose 14% compared with last year to nearly $1.6 billion, while adjusted earnings grew 70%.
• It had an adjusted EBITDA (basically profit without considering the interest on its massive debt) of $320.6 million…but it still actually lost money in part due to interest payments and other debt-related costs.

AMC’s stock popped almost 27% yesterday as investors applauded its recovery from a yearslong audience slump.

Audiences return for the magic must-watch movies

Attendance at AMC’s theaters rose 12% in the US and 18% abroad last quarter compared with the same time last year thanks to a parade of Hollywood hits. Blockbusters like Toy Story 5 and the breakout horror hits Backrooms and Obsession helped generate the biggest quarterly US box office in seven years.

And the hot streak might continue: This weekend, 4.3 million people saw Christopher Nolan’s The Odyssey at AMC. More than half of those ticket receipts came from showtimes in premium auditoriums, and AMC said it’ll continue investing in elevated moviegoing experiences to juice revenue.

However…some analysts are skeptical that the moviegoing momentum can be sustained, especially if next year has fewer splashy premieres.—SK

      

Sponsored By BambooHR

Putting people first. Without a thoughtful, people-focused AI strategy, it’s overwhelming to figure out how to effectively use AI tools in HR. That’s why BambooHR created the AI Roadmap for HR Teams. It’s a four-week guide to help your team move from experimenting with AI to building smart workflows.

5 O’CLOCK SOMEWHERE

Unsplash

Forget the alcohol, we’re dazed and confused enough after reading all the conflicting reports on one of the youngest generations’ drinking habits. The latest batch of numbers suggests that the Gen-Zers-aren’t-drinking narrative is wrong, Business Insider reported this week.

According to IWSR, a data company that tracks the alcohol industry:

• Zoomers globally now imbibe just about as much as the average adult—74% of Gen Zers have had a drink in the past six months, compared with 76% of all adults.
• That’s a significant jump from three years ago, when 66% of Gen Zers copped to drinking.
• Still, Gen Z tends to have fewer drinks than older drinkers.

Gen Z may have just gotten delayed on its way to the bar. For many young people, the pandemic interrupted the years when they would have been getting into the swing of college parties and happy hour. A high cost of living and a tough job market may have also kept cash-strapped young adults from splurging on drinks, but older Gen Zers likely have more money to spend now.

American Gen Zers may be bucking the trend: A Gallup poll found that the portion of US adults aged 18–34 who drink declined by nine points from 2023 to 2025, to roughly half. It’s possible that marijuana legalization and shifting health and socialization trends played a part.—ML

      

Matty’s work-life balance

Want to live longer? Go see your local ‘Mamma Mia!’ production

Niv Bavarsky

On Tuesdays, the Brew’s Matty Merritt brings you the news you need to make life a little easier during your 9-5, 5-9, or OOO.

Even if only one of the dad actors can sing, taking in a performance could reduce your biological age. A recent study from University College London found that participating in or even just enjoying the arts correlated with a 4% slower aging rate compared to those who had no arts engagement:

• This is about the same rate as engaging in physical exercise.
• The study suggests that people who were regular patrons of the arts (anything from visiting a museum to joining a choir) were about a year younger, biologically.

One theory…is that arts engagement may lower stress, which anyone who has planned a group trip knows can rapidly age you.—MM

Sponsored By TED Conferences

Come for the ideas, leave with inspiration. Bright minds in technology, business, science, creativity, and more are sharing their biggest ideas. Nope, it’s not another podcast. It’s TED2027—four days of inspiring talks, intimate workshops, interactive discussions, and unforgettable experiences in San Diego, March 1–4. Secure your spot today. First time at a TED conference? Get a special rate.

News

What else is brewing

• US gas prices climbed back up to an average of $4 a gallon yesterday as the Iran conflict intensified. A year ago, the average was $3.14 a gallon, per the Associated Press.
• Andy Burnham officially became the UK’s seventh prime minister in a decade and vowed to bring about “a new political model and a new economic model.”
• President Trump said Israeli Prime Minister Benjamin Netanyahu will not be arrested when he comes to New York for a UN gathering in September, after NYC Mayor Zohran Mamdani suggested the city was considering the move.
• Authorities said they arrested an ex-soldier who allegedly used fireworks and gasoline to start a fire outside of an immigration court building in New York.
• Ismael ‘El Mayo’ Zambada, a founder of the Sinaloa cartel, was sentenced yesterday to life in prison in the US after pleading guilty to drug trafficking charges last year.
• The new Air Force One that President Trump received as a gift from Qatar will be pulled for a month while it gets security upgrades.
• Forecasters say Tropical Storm Bertha, the season’s second named storm, could cause flash flooding along the Gulf Coast from Florida to Texas this week.

recs

• This game tests your world knowledge by having you sort countries into categories.
• See how your sweet tooth measures up with this map of the most popular candy in every state.
• These contest-winning photos make vultures look cool.
• This sleek travel mug is designed to preserve your drink’s taste, not just its temperature.**

^{*A message from our sponsor. **This is a product recommendation from our writers. When you buy through this link, Morning Brew may earn a commission.}

Play

Brew Mini: Your sample clue of the day is “Thin mint product?” Play the Mini here.

Sibling trivia

We’ll give you the first names of famous siblings. Can you figure out their last names?

1. Willow and Jaden
2. Jake and Maggie
3. Joan and John
4. Andrew, Luke, and Owen
5. Kate and Rooney
6. Ira and George

Answer

1. Smith
2. Gyllenhaal
3. Cusack
4. Wilson
5. Mara
6. Gershwin

Word of the Day

Today’s Word of the Day is: clamor, meaning “vehemently demand.” Thanks to Lisa from Indiana for responding to our insistent requests for suggestions. Submit another Word of the Day here.