The Morning Sixpack - May 21, 2025

Tariff trouble hits TJX profits, GOP nears SALT cap deal, EU lifts Syria sanctions, FDA pulls back COVID boosters, SEALs face racism probe, and Trump’s intel spin exposed

TJ Maxx Parent Warns Tariffs Could Hit Profits, Sending Stock Lower

TJX Companies, the parent of TJ Maxx, just threw cold water on Wall Street’s expectations with a cautious profit forecast for the current quarter.

The company now predicts earnings between 97 cents and $1.00 per share—below analysts’ consensus of $1.03—blaming tariff costs on merchandise commitments made before new tariffs hit in March and April.

Despite beating earnings estimates last quarter with a profit of 92 cents per share and posting a 5% rise in total sales to $13.1 billion, the retailer’s outlook triggered a 2.1% drop in its stock price, ending its streak of post-earnings gains. Comparable-store sales grew 3%, just shy of the expected 3.1%. TJX’s shares had recently hit a record high, but tariff headwinds now threaten to slow momentum.

The stock has still outpaced the S&P 500 in 2025, climbing 9.4% compared to the index’s 0.4% gain, but this profit warning serves as a reminder that trade tensions can quickly shift retail fortunes. If tariffs keep biting, even savvy discount retailers like TJ Maxx could face tighter margins and cautious investors.

Source: MarketWatch – TJX’s stock dips as same-store sales fall slightly short

The Trump tariffs are a hit that just keep on hittin’!

Republicans Near Breakthrough on Raising SALT Deduction Cap to $40,000

Republican Rep. Nick LaLota of New York knows his constituents need a higher SALT cap.

House GOP leaders and Republicans from high-tax states are closing in on a deal to raise the state and local tax (SALT) deduction cap to $40,000, a major increase from the current $10,000 limit.

This move could clear a key hurdle for passing President Trump’s sweeping tax-and-spending bill in the House, where the margin is razor-thin.

The proposed $40,000 cap would phase out for incomes above $500,000, up from $400,000 in the earlier version of the bill, and would grow 1% annually. Unlike prior proposals, this higher cap would not expire after a few years, offering more lasting relief for taxpayers in high-tax states like New York, New Jersey, and California. House Speaker Mike Johnson acknowledged it’s “not everything” the SALT caucus wanted but a “huge improvement.”

However, the boost to the SALT cap has sparked pushback from Republicans in lower-tax states who argue it unfairly subsidizes blue states and complicates the bill’s fiscal goals. The deal may also require concessions on Medicaid cuts and clean-energy tax break rollbacks to win over conservative hardliners, as the party juggles competing priorities ahead of the vote.

This SALT compromise underscores the delicate balancing act Republicans face in uniting a fractious caucus to pass what President Trump calls his “big, beautiful” tax-and-spending bill, while addressing demands from both moderate and conservative factions.

Source: WSJ – Lawmakers Close In on Higher SALT Cap

I wish these yokels would just leave stuff alone and make a comprehensive, all-encompassing tax program that just exists despite and in spite of Congress’ foolish quartyly whims.

The European Union Lifts Economic Sanctions on Syria to Support Recovery

The EU has taken a significant step by lifting economic sanctions on Syria to aid the war-torn country’s path to recovery and rebuilding. Announced by EU foreign policy chief Kaja Kallas, this move aims to foster a new, inclusive, and peaceful Syria after years of devastating civil war and sanctions imposed since 2011.

While economic sanctions are being removed, restrictions targeting the Assad regime and security-related measures—such as arms and technology controls to prevent repression—will remain in place. The EU emphasized the moment as an opportunity for Syrians to reunite and rebuild free from harmful foreign interference.

Syria’s foreign ministry hailed the decision as a pivotal moment, opening doors for renewed collaboration with European businesses and investors to stimulate sustainable economic development. German Foreign Minister Johann Wadephul described it as a “fresh start” for EU-Syria relations and expressed hope for further progress.

This EU move follows the United States’ decision to lift its own sanctions on Syria just a week prior, signaling a broader international shift toward engagement with Syria’s new interim government.

Source: UPI – EU lifts sanctions on Syria in support of war-torn country's recovery

Good on both the United States and the EU for listing sanctions on Syria.

FDA Pulls Back Routine COVID Shots for Healthy Adults and Kids in Major Policy Shift

The Trump administration’s FDA has announced a new framework that stops routine annual COVID-19 vaccinations for healthy younger adults and children, marking a sharp change in vaccine policy. Moving forward, only adults 65 and older or younger people with health risks will have streamlined access to updated COVID vaccines, while healthier individuals will face tougher, longer study requirements before approval.

This new guidance, published in the New England Journal of Medicine, criticizes the previous “one-size-fits-all” approach and highlights uncertainty about the benefits of repeated boosters for healthy people.

FDA officials noted, “We simply don’t know whether a healthy 52-year-old woman… will benefit from the seventh dose.”

And how do they propose to learn the answer?

Experts like Dr. Paul Offit warn the change could reduce vaccine availability and insurance coverage for many, while the CDC’s advisory panel plans to debate ongoing booster recommendations soon. The new framework could effectively override some advisory roles by raising the bar for approving vaccines for low-risk groups.

The policy reflects growing scrutiny and reevaluation of COVID vaccine strategies after years of broad booster recommendations and follows Health Secretary Robert F. Kennedy’s influence in destroying the FDA’s authority.

Source: AP – Trump officials set new requirements for COVID vaccines in healthy adults and children

Navy SEALs Face Discipline After Racist Memes Target Black Sailor, Triggering Leadership Probe

Two Navy SEALs are being disciplined for circulating racist memes targeting a Black teammate, prompting an investigation that revealed leadership failures within SEAL Team 4. The offensive memes, depicting the sailor as a slave and monkey, were shared over years in a group chat, leading to the sailor’s qualifications being revoked—a decision now overturned with his SEAL status reinstated and back pay awarded.

The probe found platoon and team leaders failed to properly address the sailor’s multiple complaints about racist behavior, exposing a troubling command climate. The two sailors responsible face punishments that could derail their careers, while several leaders are under administrative review.

“This was a very shocking case of explicit and repeated racist memes,” said the sailor’s lawyer, highlighting the severity of the conduct and its impact. Naval Special Warfare Command pledged to hold those responsible accountable and reaffirmed its commitment to dignity and respect within its ranks.

The incident shines a harsh light on ongoing challenges within elite military units, where diversity remains low and recent efforts to improve inclusion may be undermined by broader policy shifts and command issues. (Read: Hegseth)

This case adds to a string of recent investigations revealing training and leadership problems that have endangered lives and morale in the SEAL community.

Source: AP – Racist memes shared by Navy SEALs prompt investigation, disciplinary actions

Top Intelligence Aide Pressured Officials to Rewrite Report to Shield Trump from Criticism

Joe Kent is a piece of work.

A leaked email reveals how Joe Kent, chief of staff to DNI Tulsi Gabbard, pushed intelligence officials to rewrite a report so it couldn’t be “used against” President Trump. The original assessment contradicted Trump’s claims linking the Venezuelan Tren de Aragua gang to the Venezuelan government, but Kent sought edits to align the report with the administration’s narrative.

Kent’s emails urged officials to portray the gang leaders as having sanctuary in Venezuela while committing crimes in the U.S., framing the situation to protect the Trump administration from political fallout. “We need to do some rewriting... so this document is not used against the DNI or POTUS,” Kent wrote in April.

He also blamed the Biden administration for what he described as a migrant crisis, accusing it of effectively supporting the gang’s operations at the border. “TDA didn’t need logistical support from the Venezuelan government because Biden provided it for them,” Kent wrote.

The leaked documents have alarmed intelligence officials, raising concerns about politicizing intelligence analysis. This comes as Trump uses the seldom-invoked Alien Enemies Act to deport suspected gang members without due process, ramping up his hardline immigration stance during his second term.

Source: MSN – Leak shows Gabbard goon secretly ordering intel change so it couldn’t be used against Trump

I believe there’s a good chance this will be the worst Trump offense that is remembered throughout history. I could be wrong—Trump has plenty of time to trump himself.