Amazon Earnings Miss, Mike Waltz Nominated to UN, Kohl's Fires CEO

Market Performance and Amazon Earnings

• 📈 Wall Street closed higher, with the S&P 500 gaining 35 points, NASDAQ up 264, and the Dow increasing by 83 points.
• 📉 Amazon's net sales rose 9% in Q1, but Q2 operating income fell short of estimates, causing its shares to drop nearly 5% in after-hours trading.

Political Appointments and National Security

• 🇺🇸 President Trump intends to nominate Mike Waltz as the U.S. Ambassador to the United Nations.
• ⚠️ Waltz faced criticism for including an editor from The Atlantic in a Signal chat discussing military strikes.
• 🏛️ Marco Rubio is slated to serve as interim national security adviser, in addition to his current roles as Secretary of State, Acting Administrator of USAID, and acting archivist.

Corporate Leadership Changes

• 💔 Kohl's board has terminated CEO Ashley Buchanan due to directing company business to a romantic partner, violating ethical codes.
• 📉 The company's decision comes amid a challenging economic climate, with declining sales and consumer demand.
• 📈 Despite the leadership turmoil, Kohl's stock saw a 10% increase, potentially signaling board action.

Economic Indicators and Policy

• 📊 U.S. manufacturing data showed a slight contraction, with the ISM reading at 48.7, though new orders improved from the previous month.
• 💰 The White House is considering tax cuts for small businesses as tariff relief, allowing companies investing in the U.S. to deduct 100% of costs.
• 🏦 Former Treasury Secretary Lawrence Summers warns against the Federal Reserve easing interest rates, calling it a potential error that could undermine confidence in inflation control.

Financial Market News

• 💸 Robinhood shares declined 3.6% despite total net revenue exceeding estimates, with strong performance noted in equities and options trading.
• 🏠 House Republicans are exploring options to expand the state and local tax (SALT) deduction for individuals earning under $400,000, as the $10,000 cap remains unresolved.