MARKET WRAPS
STOCKS: U.S. stocks finished mostly higher, with the S&P 500 and Nasdaq hitting fresh records, as traders awaited updates on a new peace proposal from Iran.
TREASURYS: Treasury yields rose as inflationary concerns lingered.
FOREX: The U.S. dollar ticked up against rivals as traders eyed developments in the Middle East.
COMMODITIES: Oil prices slipped on reports that Iran had shared its latest proposal for negotiations with the U.S. to mediators, though President Trump said he wasn't satisfied with it.
HEADLINES
U.S. Factory Activity Expands in April
Factory activity expanded in the U.S. in April as price pressures rose in the second month of the Iran war, according to a survey of manufacturing firms.
The ISM's purchasing managers' index was 52.7 last month, in line with March. Readings above 50 indicate a sectoral expansion. Analysts polled by The Wall Street Journal were expecting a reading of 53.0.
In the last three months, the prices index has increased 25.6 percentage points to reach 84.6, its highest level since April 2022.
Spirit Airlines Prepares to Shut Down as Rescue Deal Falls Apart
Spirit Airlines is preparing to shut down.
The ailing budget airline had been hoping to finalize a $500 million lifeline from the government before running out of cash. The discount carrier hasn't been able to get sufficient support between certain bondholders and the government to secure the funding to keep it in business, people familiar with the matter said.
Spirit is currently expected to cease operations around 3 a.m. ET Saturday.
Trump Says He Will Raise Tariffs on EU Cars and Trucks
The U.S. will raise tariffs on automobiles from the European Union to 25% from 15%, President Trump said Friday, as he accused the 27-nation bloc of not complying with a trade agreement it signed last year.
"I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States," Trump wrote on his Truth Social platform. "The Tariff will be increased to 25%."
U.S. tariffs on EU automobiles were set at 15% last year as part of a trade agreement Trump signed with the EU in Scotland, which also reduced European tariffs and trade barriers on U.S. goods. European lawmakers are in the process of passing legislation to implement the bloc's side of the deal.
Top AI Companies Agree to Pentagon Deals for Classified Work
The Defense Department has completed agreements with eight technology companies, including many of the industry's biggest, to use their artificial-intelligence capabilities in classified settings, boosting the Pentagon's efforts to gain access to cutting-edge AI tools.
The department said Friday it was now capable of using in classified settings the technology and models from the ChatGPT maker, OpenAI; Alphabet's Google; Elon Musk's SpaceX; Microsoft; Amazon.com; Oracle; Nvidia; and a startup, Reflection AI. SpaceX owns Musk's AI company, xAI.
While some of the companies, including OpenAI and SpaceX, had initial deals with the Pentagon agreeing to have their AI tools used by the military in all lawful scenarios, completing the contracts is an important step toward embedding them in day-to-day operations. The deals show how much of Silicon Valley is agreeing to the Defense Department's terms in a way that Anthropic didn't when it rejected the Pentagon's contract earlier this year in what spiraled into a monthslong feud. The deals also highlight how the Pentagon is racing to incorporate AI into its systems.
Trump Tells Congress Iran Conflict Is Over, Sidestepping War Authorization
President Trump notified Congress on Friday that hostilities against Iran ended in April, allowing the White House to bypass a 60-day deadline for lawmakers to approve the war.
The notice, sent to congressional leaders, maintains that the U.S. ceased combat operations against Iran when the two countries agreed to a temporary cease-fire on April 7 that has since been extended. If hostilities resume, the 60-day clock would reset and begin again-a legal interpretation that Senate Democrats are likely to contest.
"There has been no exchange of fire between United States Forces and Iran since April 7, 2026. The hostilities that began on February 28, 2026 have been terminated," Trump wrote in the letter, a copy of which was sent to House Speaker Mike Johnson (R., La.) and Sen. Chuck Grassley (R., Iowa), the president pro tempore of the Senate.
Chevron Stock Wavers After Earnings. It's Pumping Out Fuel at a Record.
Chevron pumped out fuel at record rates in the first quarter, profiting off the oil-price spike from the Iran War and lifting its earnings above analysts' expectations. Shares rose 0.2% in early trading on Friday.
The oil major ran its U.S. refineries at their highest "throughput" levels ever in March, CFO Eimear Bonner told Barron's.
Chevron also reconfigured its Asian refineries to make them yield more fuel as Asia faces a severe shortage and has been forced to ration oil products.
Exxon Stock Slips. CEO Warns 'Full Impact' of War is Coming.
Exxon is experiencing both pain and profit from the Iran war, and its first quarter results reflected that split on Friday.
The oil major beat Wall Street's earnings targets, helping reassure investors that Exxon is weathering some of the damage from the conflict. But CEO Darren Woods said on the company's earnings call that the effects on the oil market may only be beginning.
"I think it's obvious to most that if you look at the unprecedented disruption in the world supply of oil and natural gas, the market hasn't seen the full impact of that yet," he said.
Occidental's Vicki Hollub, the First Woman to Lead a Big U.S. Oil Firm, to Retire
Occidental Petroleum Chief Executive Vicki Hollub is retiring next month after 10 years leading the oil-and-gas company and will hand the reins to her chief operating officer, Richard Jackson.
Hollub, 66, has spent more than four decades with Occidental and became the first woman to be CEO of a major U.S. oil company in 2016.
During her tenure, she helped transform the company following a $38 billion acquisition of a rival, Anadarko Petroleum, which, after initially drawing the ire of major shareholders, gave the company a dominant position in the largest oil field in the U.S. Her management has earned the accolades of Warren Buffett, whose Berkshire Hathaway has held a major stake in Occidental for years.
Cboe Is Slashing 20% of Its Staff in Bid to Focus on Core Businesses
Cboe Global Markets is slashing 20% of its global workforce and tightening its return-to-office policies, the newest plank in the exchange's plan to sharpen its focus on key businesses.
About a fifth of Cboe's roughly 1,670 workers globally have been notified that they have been laid off, according to a memo Chief Executive Craig Donohue sent to employees Friday morning, which was seen by The Wall Street Journal. The company is also offering a voluntary-retirement program to U.S. and Canadian workers who are at least 55 years old, have been with Cboe for at least five years and weren't affected by the layoffs.
The cuts are part of Donohue's strategy to allocate resources to its core, which includes index options, futures, foreign-exchange markets, and U.S. and European stocks. Since his appointment as CEO in May 2025, he has taken steps to close Cboe's equities operation in Japan and sell the company's stock exchanges in Canada and Australia. Layoffs resulting from these changes are part of the 20% cut Donohue mentioned in his memo.
Estee Lauder Raises Fiscal-Year Outlook as Turnaround Continues to Bear Fruit
Estee Lauder said its turnaround is gaining traction, raising its fiscal-year outlook on expanded margins in the recent quarter and projecting continued sales growth in the coming year.
The New York owner of beauty brands such as MAC, Smashbox and Jo Malone also said it would double down on its restructuring efforts, laying off additional employees in a bid to increase savings, offset inflation and drive investments in the business.
Investors rallied behind the outlook and cost-savings plan, sending shares 3.5% higher, to $79.39, midday Friday. Despite having lost nearly a fourth of its value since the beginning of the year, shares are up about 34% over the past 52 weeks.
TALKING POINT How Private-Credit Funds Keep Debt Off Their Balance Sheets
When a publicly traded private-credit fund trades for a big discount to its net asset value, it's a signal that the market doesn't trust the fund's balance sheet. That is often for good reason.
Shares of these funds, known as business-development companies, have slid hard. The S&P BDC Index is down to 86% of NAV and hasn't been at a premium since September. Investor concerns include the potential for artificial intelligence to disrupt software makers that are major borrowers.
But another factor might also help explain some of the recent shakiness: BDCs are more loaded with debt than they used to be, often in ways that are hard to discern. This means they are more fragile and have less room for error.
Sometimes the extra leverage doesn't count against the funds' legal limits, because the debt resides off their balance sheets. This extra leverage isn't always visible to investors because it usually doesn't have to be disclosed.
A decade ago, leverage at BDCs was capped by federal law so that, in general, they could borrow $100 for every $100 of equity. Congress changed the law in 2018, after prodding by the industry, and doubled the debt limit to two times equity.
BDCs still aren't highly levered compared with banks. BDCs have long been popular with individual investors because of their high dividend yields, and they typically lend to middle-market companies with speculative-grade credit.
--Jonathan Weil
Expected Major Events for Monday
06:00/JPN: Mar Revised Machine Tool Orders
06:00/RUS: Apr Russian Manufacturing PMI
07:45/ITA: Apr Italy Manufacturing PMI
07:50/FRA: Apr France Manufacturing PMI
07:55/GER: Apr Germany Manufacturing PMI
14:00/US: Mar Manufacturers' Shipments, Inventories & Orders (M3)
15:00/US: Apr Global Manufacturing PMI
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
Advanced Energy Industries Inc $(AEIS)$ is expected to report $1.56 for 1Q.
Alexander's Inc $(ALX)$ is expected to report for 1Q.
Allison Transmission Holdings Inc $(ALSN)$ is expected to report $2.07 for 1Q.
Apple Hospitality REIT Inc (APLE) is expected to report $0.11 for 1Q.
Axsome Therapeutics Inc $(AXSM)$ is expected to report $-0.92 for 1Q.
Beam Therapeutics Inc $(BEAM)$ is expected to report $-1.03 for 1Q.
BioMarin Pharmaceutical Inc (BMRN,BMRN-EB) is expected to report $0.71 for 1Q.
CASI Pharmaceuticals Inc (CASIF) is expected to report for 4Q.
CNA Financial Corp $(CNA)$ is expected to report $1.24 for 1Q.
CPS Technologies Corp (CPSH) is expected to report $0.01 for 1Q.
Cargojet Inc (CJT.T) is expected to report for 1Q.
Centerspace (CSR) is expected to report $-0.36 for 1Q.
Cogent Communications Holdings Inc $(CCOI)$ is expected to report $-1.00 for 1Q.
Duolingo Inc (DUOL) is expected to report $0.77 for 1Q.
EZCORP Inc - Class A $(EZPW)$ is expected to report $0.40 for 2Q.
Equitable Holdings Inc $(EQH)$ is expected to report $1.35 for 1Q.
GeneDx Holdings Corp (WGS) is expected to report $-0.56 for 1Q.
Genelux Corp $(GNLX)$ is expected to report $-0.19 for 1Q.
HealthStream Inc $(HSTM)$ is expected to report $0.16 for 1Q.
Hess Midstream LP $(HESM)$ is expected to report $0.67 for 1Q.
JBT Marel Corp (JBTM) is expected to report $0.59 for 1Q.
Krystal Biotech Inc (KRYS) is expected to report $1.44 for 1Q.
LB Foster Co $(FSTR)$ is expected to report $-0.22 for 1Q.
Loews Corp (L) is expected to report $0.72 for 1Q.
MSA Safety Inc $(MSA)$ is expected to report $1.74 for 1Q.
Marzetti Co (MZTI) is expected to report $1.57 for 3Q.
Medifast Inc $(MED)$ is expected to report $-0.52 for 1Q.
NAPCO Security Technologies Inc (NSSC) is expected to report $0.33 for 3Q.
Norwegian Cruise Line Holdings Ltd $(NCLH)$ is expected to report $0.11 for 1Q.
OSI Systems Inc (OSIS) is expected to report $2.34 for 3Q.
Pinnacle West Capital Corp (PNW) is expected to report $-0.01 for 1Q.
RLJ Lodging Trust (RLJ) is expected to report $-0.07 for 1Q.
Royale Energy Inc (ROYL) is expected to report for 4Q.
Superior Group of Cos Inc $(SGC)$ is expected to report $0.03 for 1Q.
TScan Therapeutics Inc $(TCRX)$ is expected to report $-0.20 for 1Q.
Tennant Co $(TNC)$ is expected to report $-0.23 for 1Q.
Transocean Ltd (RIG,RIGN-EB) is expected to report $0.09 for 1Q.
Travere Therapeutics Inc $(TVTX)$ is expected to report $-0.23 for 1Q.
Twist Bioscience Corp (TWST) is expected to report $-0.50 for 2Q.
Tyson Foods Inc - A Share $(TSN)$ is expected to report $0.75 for 2Q.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
May 01, 2026 16:43 ET (20:43 GMT)
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