MARKET WRAPS

STOCKS: U.S. stocks rose as earnings reports revealed the positive impact of the artificial intelligence boom on the industrial sector.

TREASURYS: Treasury yields fell as traders digested the Federal Reserve's policy statement.

FOREX: The U.S. dollar gave back some recent gains as interest rate fears subsided.

COMMODITIES: Oil futures fell, giving back some of their recent gains. Globally traded Brent crude futures tested four-year highs around $120 a barrel early in the session.

HEADLINES

Apple Sales Top $111 Billion in Second Quarter, Powered by iPhone 17

Tim Cook's parting gift for his successor: strong iPhone sales and tidy margins.

Apple reported that revenue from iPhones rose 21.7% to nearly $57 billion in the second quarter compared with the prior year as customers, excited by the iPhone 17 lineup, continued to upgrade their devices at a brisk pace. That powered Apple to quarterly sales of $111.2 billion, results that exceeded Wall Street expectations.

The results might have been better if not for the constrained supply of advanced chips that power Apple's devices, said Apple Chief Financial Officer Kevan Parekh. Lately Taiwan Semiconductor, the maker of Apple's advanced chips, is selling more of its supply to artificial-intelliance chip makers such as Nvidia.

Iran War Lifts Fed's Targeted Inflation Metric

Higher energy prices ratcheted up the Federal Reserve's preferred measure of inflation in March, illustrating why plans for further rate cuts have grown divisive at the central bank.

The personal-consumption expenditures price index climbed by 0.7% in March, after rising by 0.4% in February, the Commerce Department said Thursday. Excluding the volatile food and energy categories, core PCE prices rose by a tamer 0.3%.

Over the past year, the PCE price index is up by 3.5%, well above the 2% annual rate the Fed aims for. The core 12-month PCE inflation rate is 3.2%.

AI Investment Boosted Economic Growth, While Consumers Tapped the Brakes

U.S. economic growth picked up in the first quarter as businesses invested heavily in artificial intelligence, rebounding from a fourth quarter dented by a government shutdown.

At the same time, the economy didn't expand as fast as economists expected, weighed down by softer consumer spending growth.

House Votes to Reopen Most of DHS, Ending Long Shutdown

WASHINGTON-The House approved a long-delayed measure to fund most of the Department of Homeland Security and end a 76-day shutdown, after the Trump administration warned it had run out of emergency funds to pay workers next week.

The bipartisan measure, which passed on a voice vote, funds operations including the Coast Guard, Federal Emergency Management Agency and Transportation Security Administration but not DHS's immigration-enforcement arms, as part of a two-track compromise backed by President Trump.

The Senate approved the legislation earlier this month but Speaker Mike Johnson (R., La.) had declined so far to take it up until Thursday, waiting for progress on a second track that would allow Republicans to fund Immigration and Customs Enforcement and Border Patrol without Democratic votes.

U.S. Leading Indicators Forecasts Further Slowdown

U.S. leading economic indicators fell in March, signaling slower growth ahead as higher oil prices and supply-chain tensions will likely place additional upward pressure on inflation and further reduce consumers' purchasing power, according to a basket of monthly economic indicators.

The Leading Economic Index, or LEI, published Thursday by research group The Conference Board, declined by 0.6% in March to 97.3. That reversed its 0.3% increase in February to 97.9.

"After rising in February, the US LEI pulled back sharply in March, as building permits declined and consumer expectations and stock prices weakened," said Justyna Zabinska-La Monica, a senior manager at The Conference Board.

Eli Lilly Shares Jump 10% as Mounjaro, Zepbound Fuel Massive Growth

Booming sales of weight-loss shots fueled strong revenue and profit growth for Eli Lilly in the latest quarter, as robust consumer demand helped offset falling prices for the drugs.

The results blew past Wall Street expectations, and Lilly raised its forecast for full-year 2026 sales and profit.

Lilly shares rose nearly 10% in midday trading.

Caterpillar Lifts Outlook as AI-Fueled Power Demand Persists

Caterpillar said demand for its construction equipment, engines and generators remains strong despite rising geopolitical tensions and higher energy prices.

The company, known for its giant yellow dump trucks, bulldozers and excavators, is closely monitoring macroeconomic conditions in case recent pressures begin to weigh on demand, Chief Executive Joe Creed said on a call with analysts Thursday.

As of now, though, the added uncertainty hasn't been an issue.

Mastercard Profit, Sales Rise as Payment Network Arm Grows

Mastercard recorded higher profit and sales in the first quarter, driven by growth in its payment network business.

The credit-card company on Thursday posted a profit of $3.88 billion, or $4.35 a share, in the quarter ended March 31, compared with $3.28 billion, or $3.59 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $4.60, ahead of the $4.41 anticipated by analysts, according to FactSet.

TALKING POINT Millions of Americans Might Be Eligible for Tax Refunds From Covid Era

WASHINGTON-Tens of millions of Americans might be eligible to claim refunds from the Internal Revenue Service because of a federal-court decision that said many pandemic-era tax deadlines didn't actually apply, according to the agency's in-house taxpayer advocate.

The court ruling determined that the tax code's relaxed rules for disaster victims-combined with presidential disaster declarations during the Covid-19 pandemic-paused many required deadlines between Jan. 20, 2020 and July 10, 2023.

It affects people who paid penalties for filing late returns, people who paid interest to the government and people penalized for failing to make estimated tax payments during the pandemic, Erin Collins, the national taxpayer advocate, wrote in a blog post Thursday.

"This issue is widespread and not limited to a small or specialized group of taxpayers," Collins wrote. "Impacted taxpayers represent a broad cross-section of the public, including individuals, small businesses, large corporations, estates, and trusts."

In fiscal 2022 alone, the IRS imposed more than 12 million estimated-tax penalties and more than 16 million failure-to-pay penalties totaling more than $12 billion. Some do get abated later.

The Wall Street Journal reported back in February on the court ruling and the prospect of potentially millions of taxpayers being owed refunds.

Collins urged taxpayers to determine whether they are eligible for refunds and, if so, to file claims by July 10. For most taxpayers, that means filing a Form 843, Claim for Refund and Request for Abatement, which has to be mailed in. Collins recommends sending it certified.

--Richard Rubin

Expected Major Events for Friday

00:30/JPN: Apr Japan Manufacturing PMI

05:00/JPN: Apr Auto sales

06:00/JPN: Mar Revised Machine Tool Orders

06:00/UK: Apr Nationwide House Price Index

08:30/UK: Mar Bank of England effective interest rates

08:30/UK: Mar Money and Credit - Lending to Individuals, Lending to Businesses, Broad Money and Credit

08:30/UK: Mar Monetary & Financial Statistics

08:30/UK: Apr S&P Global UK Manufacturing PMI

13:30/CAN: Apr Canada Manufacturing PMI

13:45/US: Apr US Manufacturing PMI

14:00/US: Apr ISM Report On Business Manufacturing PMI

20:00/US: Apr Domestic Auto Industry Sales

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Friday

AutoNation Inc $(AN)$ is expected to report $4.57 for 1Q.

BrightSpring Health Services Inc $(BTSG)$ is expected to report $0.27 for 1Q.

Brookfield Renewable Corp (BEPC,BEPC.T) is expected to report for 1Q.

Brookfield Renewable Partners LP (BEP,BEP.UN.T) is expected to report $-0.42 for 1Q.

Cboe Global Markets Inc $(CBOE)$ is expected to report $3.13 for 1Q.

Chevron Corp $(CVX)$ is expected to report $1.00 for 1Q.

Church & Dwight Co $(CHD)$ is expected to report $0.92 for 1Q.

Cinemark Holdings Inc $(CNK)$ is expected to report $-0.20 for 1Q.

Civeo Corp $(CVEO)$ is expected to report $-0.61 for 1Q.

Cohen & Co Inc (COHN) is expected to report for 1Q.

Colgate-Palmolive Co $(CL)$ is expected to report $0.94 for 1Q.

Dominion Energy Inc (D) is expected to report $0.88 for 1Q.

Exxon Mobil Corp (XOM) is expected to report $0.90 for 1Q.

Forum Energy Technologies Inc (FET) is expected to report $0.39 for 1Q.

Fulgent Genetics Inc (FLGT) is expected to report $-0.07 for 1Q.

Gates Industrial Corp PLC (GTES) is expected to report $0.22 for 1Q.

GrafTech International Ltd $(EAF)$ is expected to report for 1Q.

HF Sinclair Corp (DINO) is expected to report $0.02 for 1Q.

Imperial Oil Ltd (IMO,IMO.T) is expected to report $2.30 for 1Q.

Madison Square Garden Sports Corp $(MSGS)$ is expected to report $0.56 for 3Q.

Magna International Inc (MG.T,MGA) is expected to report $1.37 for 1Q.

Moderna Inc (MRNA) is expected to report $-2.15 for 1Q.

Newell Brands Inc $(NWL)$ is expected to report $-0.11 for 1Q.

OneMain Holdings Inc $(OMF)$ is expected to report $1.83 for 1Q.

Oppenheimer Holdings Inc $(OPY)$ is expected to report for 1Q.

Perella Weinberg Partners $(PWP)$ is expected to report for 1Q.

Pinetree Capital Ltd (PNP.T) is expected to report for 1Q.

Piper Sandler Cos $(PIPR)$ is expected to report for 1Q.

Portland General Electric $(POR)$ is expected to report $0.72 for 1Q.

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April 30, 2026 16:46 ET (20:46 GMT)

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