Elon Musk criticizes Trump’s ‘big beautiful bill,’ a fracture in a key relationship

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By CHRIS MEGERIAN, Associated Press

WASHINGTON (AP) — Elon Musk is criticizing the centerpiece of President Donald Trump’s legislative agenda, a significant fracture in a partnership that was forged during last year’s campaign and was poised to reshape American politics and the federal government.

The billionaire entrepreneur, who supported Trump’s candidacy with at least $250 million and has worked for his administration as a senior adviser, said he was “disappointed” by what the president calls his “big beautiful bill.”

The legislation includes a mix of tax cuts and enhanced immigration enforcement. While speaking to CBS, Musk described it as a “massive spending bill” that increases the federal deficit and “undermines the work” of his Department of Government Efficiency, known as DOGE.

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“I think a bill can be big or it could be beautiful,” Musk said. “But I don’t know if it could be both.”

His CBS interview came out Tuesday night. White House officials did not immediately respond to questions. Republicans recently pushed the legislation through the House and are debating it in the Senate.

Musk’s comments come as he steps back from his government work, rededicating himself to companies like the electric automaker Tesla and rocket manufacturer SpaceX. He’s also said he’ll reduce his political spending, because “I think I’ve done enough.”

At times, he’s seemed chastened by his experience working in government. Although he hoped that DOGE would generate $1 trillion in spending cuts, he’s fallen far short of that target.

“The federal bureaucracy situation is much worse than I realized,” he told The Washington Post. “I thought there were problems, but it sure is an uphill battle trying to improve things in D.C., to say the least.”

Musk had previously been effusive about the opportunity to reshape Washington. He wore campaign hats in the White House, held his own campaign rallies and talked about excessive spending as an existential crisis.

He was also effusive in his praise of Trump.

“The more I’ve gotten to know President Trump, the more I like the guy,” Musk said at one point. “Frankly, I love him.”

Trump repaid the favor, describing Musk as “a truly great American.” When Tesla faced declining sales, he turned the White House driveway into a makeshift showroom to illustrate his support.

It’s unclear what, if any, impact that Musk’s comments about the bill would have on the legislative debate. During the transition period, he helped whip up opposition to a spending measure as the country stood on the brink of a federal government shutdown.

But Trump remains the dominant figure within the Republican Party, and many lawmakers have been unwilling to cross the president when he applies pressure for his agenda.

Philanthropy wants to build Gen Z’s confidence in institutions. Will youth empowerment foster trust?

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By JAMES POLLARD, Associated Press

NEW YORK (AP) — Perhaps the outlook developed when COVID-19’s uncontrolled spread upended nearly every facet of their young lives. Maybe it was hardened as the worst of climate change’s harms grew likelier despite scientists’ stark warnings. It’s possible the attitude even formed from early memories of the financial insecurity brought upon their families by the Great Recession.

Whatever the reason, it’s well documented that Gen Z tends to lack trust in the major institutions that previous generations expected to safeguard their futures.

Around 1 in 10 adults under 30 had “a great deal of confidence” in the people running the Supreme Court in an AP-NORC poll from June 2024. A May 2023 survey found 44% of adults under 30 had “hardly any confidence at all” in those running banks and financial institutions — about twice the share of adults ages 60 and older, who felt the same way.

The gap extends to other behaviors. An AP-NORC poll conducted in March found that only about one-quarter of adults under 30 volunteered their time to charity in the past year or provided non-financial support to people in their community, compared to 36% of those over 60. Younger adults were also more likely than older adults to say they or their household donated $0 to charity, according to the poll.

The philanthropic sector is working to reverse any disillusionment by empowering Gen Z to make the structural change they so often seek. Born out of the idea that young people distrust institutions because they don’t feel served or included, several initiatives are underway with hopes that more responsive institutions will be seen as more legitimate ones. Perhaps the most optimistic believe their energy can bring alternatives to the status quo to life — if only given meaningful roles.

“Young people — we’re not just victims of these systems. We have agency and we have power,” said Summer Dean, 27, who breaks down complex environmental topics into actionable information for the 116,000 followers of her Instagram, @climatediva.

“If you want to inspire us, actually include us in solid structures of your organization,” she added.

Summer Dean, 27, works inside a coffee shop, Friday, May 23, 2025, in New York. (AP Photo/Heather Khalifa)

DoSomething doesn’t want to do just anything

When DeNora Getachew became DoSomething CEO in April 2021 during the pandemic, she acknowledged the platform largely provided “slacktivist” opportunities — or low-effort ways to support social causes online. DoSomething was not meeting the desires of its 13- to 25-year-old audience for more lasting community change.

The nonprofit was founded in 1993 to boost youth volunteering. But Getachew said the “new DoSomething” sees volunteerism as a “step on the ladder” but not “the top rung.”

She pointed to a new program called Talking Trash that does more than just encourage volunteers to collect and recycle plastic bottles. Through educational campaigns and microgrants for select projects, DoSomething prompts members to think more deeply about improving their communities’ overall waste management infrastructure.

“We’re their cheerleader,” she said. “We’re the person who has their back and are helping them figure out how they tap into that, at least initial, sense of curiosity about what they can do.”

Katelyn Knox, a 25-year-old former police officer, is part of the inaugural cohort of DoSomething “binfluencers” who received $250 and peer support to improve local recycling systems. After moving from Florida to Los Angeles, Knox noticed many neighbors did not understand the guidelines for what is actually recyclable. Even if they did, she found that recycling bins were scarce.

She decided to design an app that identifies which recyclables go where and brings door-to-door recycling services to her community.

“It is very hard to make change. You have to convince so many people to make this change — especially people who are older than you,” Knox said. “It’s not so scary knowing that other people are with me and doing it right next to me in their own cities.”

DoSomething brought together Knox and Dean to record a video educating college students about broken recycling systems.

Dean, the environmental storyteller, said she’s seen many young folks respond to overwhelming structural issues in one of two ways: accepting that they’ll “just have to learn to survive” or “realizing that we can just really imagine a new system of being and governing.”

“A lot of us feel powerless at some point through all of this because there’s many times where these systems make us feel like there is nothing we can do,” she said. “I always just tell people to hold onto these heavy emotions because that is what moves you to take action and not feel so much like a victim.”

One Silicon Valley entrepreneur’s $10 million call

LinkedIn co-founder Reid Hoffman launched The Trust in American Institutions Challenge last December with philanthropic accelerator Lever for Change. The $10 million open call will scale local solutions to restore public confidence in anything from education and government to media and medicine.

Hoffman, a 57-year-old Democratic megadonor, finds that philanthropy offers more opportunities “for beginning the trust stuff.” He said that’s because there are no conflicting interests other than the mission.

FILE – LinkedIn co-founder Reid Hoffman sits in the lobby of LinkedIn’s Mountain View, Calif., headquarters on Tuesday, May 7, 2013. (AP Photo/Noah Berger, File)

The challenge is not focused solely on youth. Hoffman said that “just about everybody” across the political spectrum can recognize society’s trust issues. As he sees it, the problem isn’t that institutions don’t work for young people. They do work, according to Hoffman, and “part of being young is learning that.” The idea, he added, “is to reconnect and revivify.”

“We’re like fish in water. We don’t realize how important these institutions are to our ongoing environment,” Hoffman said. “Revitalizing them is an important part of a society that works.”

A semiquincentennial opportunity

Another effort is connecting youth representatives with decision-makers to help civic institutions reach new generations ahead of the United States’ 250th anniversary.

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Recognizing that today’s teens and young adults are the ones who will inherit American democracy, Youth250 is passing the microphone to young people as the country reflects on its past and looks ahead to its future. Advisors are working with museums, historic sites and libraries to center Gen Z’s perspectives.

Dillon St. Bernard, the 25-year-old Youth250 documentary series director, said the campaign “is about turning representation into power.”

He emphasized the need to build intergenerational coalitions. Today’s challenges — climate change, democracy and racial justice — haven’t been solved by their predecessors, according to St. Bernard.

“We as a generation have known nothing but a house on fire and want to see what it would look like to stop that spread,” he said.

Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

Wall Street holds steady as several retailers including Abercrombie report solid results

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By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — U.S. stocks are holding steadier on Wednesday, a day after leaping back within a few good days’ worth of gains from its all-time high.

The S&P 500 was up 0.2% in early trading. It’s sitting 3.5% below its record after charging higher amid hopes that the worst of the turmoil caused by President Donald Trump’s trade war may have passed. It had been roughly 20% below the mark last month.

The Dow Jones Industrial Average was up 60 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% higher.

The next big test for Wall Street will come after trading ends for the day, when market heavyweight Nvidia will report its latest results. Expectations are high for the bellwether of the frenzy around artificial-intelligence technology. So are worries that its stock price may have run too high, even after it has largely stalled this year.

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Several retailers delivered better-than-expected results for the latest quarter in the morning. Abercrombie & Fitch soared 27.4% after its profit and revenue both topped analysts’ expectations. CEO Fran Horowitz credited broad-based growth across its business around the world, and strength for its Hollister brand offset weakness for its Abercrombie brand.

Dick’s Sporting Goods added 2.7% after it likewise topped analysts’ expectations for the latest quarter, and it stood by its financial forecasts it earlier gave for the full year.

On the losing end of Wall Street was Okta, which fell 12% even though the identity and access management company reported better results for the latest quarter than Wall Street expected. Analysts called it a solid performance, but investors may have been looking for even more after its stock came into the day up nearly 60% for the year so far.

Macy’s swung from an initial gain to a loss of 0.6% after reporting milder drops in revenue and profit than analysts expected for the latest quarter. The retailer also maintained its forecast for revenue this year, but it cut its profit forecast in part because of tariffs and some moderation of spending by consumers.

Video-game retailer GameStop fell 3% after saying it had bought 4,710 bitcoin, which is worth more than $510 million at its current price. The company said in late March that it could begin buying bitcoin to store some of the cash in its treasury.

Later Wednesday, the Federal Reserve will release the minutes from its meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. Officials for the U.S. central bank cited an increased risk of higher unemployment and inflation for the U.S. economy, in part due to Trump’s sweeping tariffs.

In stock markets abroad, indexes were modestly lower across much of Europe and Asia.

South Korea was an exception, where the Kospi jumped 1.3% thanks in part to gains for Samsung Electronics and other tech companies.

In the bond market, the yield on the 10-year Treasury rose to 4.46% from 4.43% late Tuesday.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Macy’s profit and sales slip and it cuts profit forecast for 2025, but tops Q1 expectations

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By ANNE D’INNOCENZIO and MICHELLE CHAPMAN, Associated Press Business Writers

NEW YORK (AP) — Macy’s sales and profit slipped in its first quarter and the department store, citing more cautious customers and the impact that the U.S. trade war will have on the company and its shoppers, trimmed its profit forecast for 2025.

However the New York retailer, which also owns upscale Bloomingdale’s and the Bluemercury cosmetics chain, topped most performance expectations for the first three months of the year and maintained its sales forecast for the year.

Chairman and CEO Tony Spring said during Macy’s conference call on Wednesday that the company is in active talks with its partners as it navigates current economic conditions.

“We are confident that we can continue to diversify countries of origin for both our private and national brands,” Spring said. “With the recent announcement of these tariffs, we’ve renegotiated orders with suppliers. We’ve canceled or delayed orders where the value proposition is just not where it needs to be.”

The executive said that Macy’s currently has a “good handle on the tariff-related costs,” but is aware that the situation is constantly changing.

FILE – A Macy’s department store is in Bay Shore, Long Island, New York, on Tuesday, December 12, 2023. (AP Photo/Ted Shaffrey, File)

The retailer is raising prices on some of its brands. While consumers remain under pressure, Spring said that they are responding well to new products and items that are considered to be a good value.

Shares rose about 4% before the market opened Wednesday.

Macy’s sales dropped to $4.79 billion from $5 billion a year earlier, better than the $4.42 billion that analysts polled by FactSet expected.

Comparable sales, which include online channels, dipped 2%. However, Bloomingdale’s and Bluemercury both saw comparable sales growth.

Neil Saunders, managing director of GlobalData, noted Bloomingdale’s 3% comparable sales growth.

“Good execution from Bloomingdale’s and its balanced assortment of luxury and prestige products has served it well,” he said. “This is especially so compared to chains that play much more exclusively in the very high-price arena, which have lost customers and seen an erosion of spending.”

“Our first-quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy’s, Inc. to sustainable profitable growth,” Spring said in a statement on Wednesday.

For the period ended May 3, Macy’s earned $38 million, or 13 cents per share. That compares with $62 million, or 22 cents per share, a year ago.

Stripping out certain items, earnings were 16 cents per share, which topped Wall Street’s estimate by a penny.

The company still anticipates 2025 sales in a range of $21 billion to $21.4 billion. It now expects full-year adjusted earnings between $1.60 and $2 per share. Its prior forecast was for an adjusted profit of $2.05 to $2.25 per share.

Industry analysts had been projecting full-year sales of $21.03 billion and an adjusted per-share profit of $1.91.

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Macy’s and other retailers are wrestling with uncertainty about tariffs that’s making it hard to plan, while contending with customers who seem to have the same issues and are pulling back on spending.

Macy’s had about 20% of its products originate from China at the end of its last fiscal year. Private brands sourced approximately 27% from China, down from 32% last year.

Teen retailer American Eagle Outfitters withdrew its financial outlook for the year earlier this month citing “macro uncertainty” and said it would write down $75 million in spring and summer merchandise.

Ross Stores did the same last week.

Walmart, the nation’s largest retailer, got a public scolding from President Donald Trump after it said this month that it has already raised prices on some items and would have to do so again right when the back-to-school shopping season kicks off. Trump told the retail giant that it should “eat” the additional costs created by his tariffs.

Target Corp. announced last week that sales fell more than expected in the first quarter, and the retailer warned they will slip for all of 2025 as its customers, worried over the impact of tariffs and the economy, pull back on spending. The company said that it should be able to offset the majority of the impacts from tariffs.

Trump’s threatened 145% import taxes on Chinese goods were reduced to 30% in a deal announced May 12, with some of the higher tariffs on pause for 90 days. Trump on Friday threatened a 50% tax on all imports from the European Union as well as a 25% tariff on smartphones unless those products are made in America.

But then on Sunday, Trump said that the U.S. will delay implementation of a 50% tariff on goods from the EU from June 1 until July 9 to buy time for negotiations with the bloc.

Macy’s executives emphasized in March during the last earnings call that the company is facing lots of unpredictability given ever-changing tariff policies and is focusing on what it can control and zeroing in on improving its merchandise and services, including improving its store label brand.