The Supreme Court has issued 5-3 decision in favor of U.S. government, with Justice Kennedy saying that the government has significant power to regulate immigration and while Arizona may have signifacnt frustrations they may not have policies that undermine federal law.
This is a win for the federal government and a loss for Arizona.This is just a preliminary result from CNN's liveblog, but it is extremely good news. It will be interesting to see how this ruling affects other states' SB1070-clones.
UPDATE: It seems as if my joy was a bit premature. The Supreme Court did not challenge the racial profiling part of the bill, but it did reassert that the federal government is the authority over immigration issues. A bittersweet ruling.