By Teresa Rivas

As stocks swooned in response to the so-called Liberation Day tariff news, it seemed April would be the cruelest month, to borrow a phrase from T.S. Eliot. Yet by month's end, it was far from a wasteland.

As stocks closed on Wednesday, the S&P 500 was down less than 1% compared with before President Donald Trump unveiled a 10% tariff on nearly all countries, plus higher "reciprocal" levies on many more. The Nasdaq Composite had eked out a gain.

Nonetheless, some scars remain. On Thursday, the first trading day of May, none of the stocks in the S&P 100 opened at record levels, despite stocks making broad-based gains. Philip Morris and Netflix closed at new highs on Wednesday, but slipped back as trading began on Thursday.

Nine S&P 100 stocks -- Philip Morris, Netflix, Berkshire Hathaway, Duke Energy, McDonald's, Southern Company, Coca-Cola, Palantir Technologies, and Booking Holdings -- were within 5% of record levels. That eclectic group reflects the market's mood last month.

As a defensive name, Philip Morris shone throughout April as investors fled to safety, while also delivering upbeat quarterly results near the end of the month. The company's chief financial officer spoke with Barron's following the report, noting that Philip Morris continues to benefit from the shift away from traditional cigarettes.

The story was largely the same for Coca-Cola. The consumer-staple stalwart had been doing well even before reporting a strong first quarter and noting that tariffs would be "manageable."

Many investors felt they could do worse during times of turmoil than following in the footsteps of Warren Buffett, although Berkshire Hathaway was nearly flat in April, as was utility Duke Energy. Berkshire will report its results on Saturday, while Duke is scheduled to do so on Tuesday. Fellow utility Southern wasn't doing much on Thursday, despite reporting a better-than-expected quarter.

A strong quarter was just icing on the cake for Netflix, which soared throughout April. Streaming video, the company's main business, is a relatively inexpensive form of entertainment, and Spotify is fairly well integrated into the countries where it operates. The result is that many investors believe it is insulated from the trade war and any economic slowdown it brings.

McDonald's reported a disappointing first quarter on Thursday. Restaurants have been a tough space in general as nervous consumers pull back on dining out. Still, given its size and inexpensive meals, McDonald's has a somewhat defensive reputation, and was still up throughout April.

In tech, Palantir wasn't only an April winner, but one of the best performers through the first 100 days of the second Trump presidency. Investors continue to buy the stock because of the potential growth of its artificial intelligence-powered software business.

Booking, the online travel agency formerly known as Priceline, was up roughly 10% last month. Although investors are worried about travel demand in light of uncertainty swirling around policy, trade, and the broader economy, the company's first quarter was strong and management said demand was stable. Booking is one of the larger and more established players in the industry, so it is often seen as one of the safer bets during downturns.

In short, although early April's carnage has healed to a degree because Trump has walked back some tariffs and investors are hopeful the economy will avoid the worst potential outcomes, not many stocks gained last month. Shares with decent defensive characteristics or company-specific reasons for potential gains were the exception.

Here's hoping for a calmer May.

Write to Teresa Rivas at teresa.rivas@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 01, 2025 13:28 ET (17:28 GMT)

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