Key Takeaways
- Trump teases an imminent Iran deal with the immediate reopening of the Strait of Hormuz as a core provision, aiming to restore global energy flow.
- Lululemon (LULU) shares tumbled over 9% in after-hours trading after the company slashed its full-year EPS guidance to $10.95–$11.15, citing mounting headwinds.
- Kohl's (KSS) is seeking a $140 million refund on IEEPA tariffs already paid, part of a larger $190 million tariff recovery effort for fiscal 2025 and 2026.
- Todd Blanche will be formally nominated for Attorney General, as President Trump moves to make his former personal lawyer the permanent head of the Justice Department.
- UK Prime Minister Keir Starmer has no intention of stepping down, according to his spokesperson, despite a wave of cabinet resignations and local election losses.
Trump Signals Diplomatic Shifts in Iran, India, and Cuba
President Trump announced on Thursday that the United States is nearing a significant peace agreement with Iran. The President emphasized that the immediate reopening of the Strait of Hormuz is a non-negotiable "key provision" of the deal, which aims to de-escalate regional tensions that have seen recent missile exchanges between Iran and Gulf neighbors.
Simultaneously, Trump signaled progress on a trade deal with India, noting that while the country had "taken advantage" of the U.S. for years, the bilateral relationship remains strong. Regarding the Caribbean, the President stated that the administration would "handle Cuba" only after resolving the Iran crisis, clarifying that current sanctions are aimed at addressing resource scarcity rather than immediate regime change.
Corporate Outlooks Sour as Lululemon and Kohl's Face Headwinds
Lululemon Athletica (LULU) saw its stock price collapse after-hours following a disappointing Q1 report and a lowered fiscal 2026 outlook. The athleisure giant now expects annual revenue between $11 billion and $11.15 billion, down from previous estimates, as it struggles with waning demand in the Americas and increased competition.
In the retail sector, Kohl's (KSS) has filed for a $140 million refund related to IEEPA (International Emergency Economic Powers Act) tariffs. The company revealed it has paid a total of $190 million in tariffs across fiscal 2025 and early 2026 and is aggressively seeking to recoup these costs to stabilize its balance sheet.
Political Appointments and Global Stability
The White House is moving forward with the formal nomination of Todd Blanche for Attorney General. Blanche, who has served in an acting capacity for two months, faces a potentially bruising Senate confirmation battle due to his history as Trump’s defense attorney and his recent advocacy for a controversial $1.8 billion "anti-weaponization" fund.
In the United Kingdom, Prime Minister Keir Starmer is resisting intense pressure to resign following a "mauling" in local elections. Despite the departure of high-profile cabinet members, Starmer’s spokesperson reiterated that the PM has "no intention of stepping down" and remains focused on his governing mandate through 2029.
Geopolitical Tensions and Macroeconomic Updates
Regional volatility remains high as Iranian General Mohsen Rezaei issued a provocative warning via Fars News, suggesting that if the UAE and Kuwait side with "Zionists," their territories should be ceded to Saudi Arabia and Iraq. This rhetoric comes as Kuwaiti air defenses reportedly intercepted multiple Iranian drones and missiles earlier this week.
On the domestic front, the Federal Reserve released its weekly balance sheet report and an interactive guide for investors. Market participants are closely monitoring these FedData releases for clues on liquidity trends as the administration continues to navigate complex trade and tariff negotiations with global partners, including a recent meeting with automakers that focused on car repair regulations rather than new tariff implementations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.