AI Summary
5 min readThe second quarter of 2025 was a blockbuster for America’s largest companies. S&P 500 earnings per share soared 53% year over year, and revenues rose nearly 16% — the best gains since the immediate post-pandemic rebound in mid-2021. Corporate leaders are unusually optimistic: for every company that lowered profit guidance for the current quarter, roughly two raised it. The Federal Trade Commission also sued Amazon for allegedly manipulating its advertising pricing, and the predictions platform Kalshi issued its first-ever lifetime ban — to former Representative George Santos. Here is what happened and why it matters.
The Profit Boom: Consumer Spending, AI Buildout, and Tariff Refunds
The surge in corporate profits is being driven by several forces at once. Consumer spending remains robust, particularly at the higher end of the income spectrum. Wall Street Journal reporter Tao Francis noted that the "wealth effect" from a booming stock market and high home prices is encouraging wealthier Americans to spend freely, even as lower-income households feel pinched. At the same time, companies are pouring capital into artificial intelligence infrastructure. "Data centers are buildings," Francis said. "That's construction equipment, construction workers, equipment and wiring." This spending is rippling through the economy.
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What you'll learn
- 1 (01:17) **Supreme Court Allows Trump to Keep Building White House Ballroom** - The court clears the path for one of the president’s prize projects, with Chief Justice Roberts and the three Democratic-appointed justices dissenting.
- 2 (01:47) **Kalchi Issues First Lifetime Ban to George Santos** - The predictions platform bans the former congressman and fines him over $70,000 for allegedly placing misleading bets on his attendance at the State of the Union address.
- 3 (02:28) **FTC Sues Amazon for Allegedly Manipulating Ad Prices** - The agency, joined by over 20 state attorneys general, claims Amazon secretly raised minimum ad prices 70-80% of the time, generating tens of billions of dollars over seven years. Amazon disputes the characterization.
- 4 (03:02) **America’s Biggest Companies See a Boom in Profits and Sales** - S&P 500 earnings per share soared 53% and sales rose nearly 16% in the second quarter, marking the best gains since mid-2021.
- 5 (05:36) **Met Museum Cancels Gala Honoring John Galliano** - The high-profile event is scrapped following backlash over the designer’s past anti-Semitic remarks, despite his attempts to make amends and a recent career comeback.
- 6 (08:01) **Floods at the Grand Canyon Leave Two Dead and Dozens Missing** - Heavy rain caused flash floods in parts of the national park, leading to over 60 evacuations, with meteorologists warning of more thunderstorms.
- 7 (08:12) **Markets Dip, Oil Rises on Renewed Strait of Hormuz Fighting** - Brent crude futures climbed back above $90 a barrel after U.S. forces attacked Iranian rocket launchers. The Dow, S&P, and NASDAQ all fell slightly, but still finished the month in the green.
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Show Notes
P.M. Edition for Aug. 31. The second quarter was a good one for S&P 500 companies. Per-share earnings soared 53% and many companies have raised their guidance. WSJ reporter Theo Francis explains what’s propelling those gains. Plus, the Federal Trade Commission sues Amazon for allegedly manipulating prices for ads on its site—and making billions from merchants. And the Supreme Court allows President Trump to keep building his White House ballroom. Pierre Bienaimé hosts.
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