Closing Bell: Stocks Finish April Strong; Apple Beats, Meta’s User Slump Tempers Optimism

Key Points

• U.S. equities ended the month higher, led by the Russell 2000 (+2.21%), while Communication Services, Industrials, and Utilities outperformed and Information Technology lagged.
• Apple beat Q2 revenue and EPS expectations, driven by Services and other hardware segments, and announced a $100B buyback despite iPhone supply constraints.
• Meta topped revenue and earnings estimates on strong ad growth, but user metric declines and higher AI-driven capex weighed on sentiment.

U.S. equities closed the month on a strong note, with the S&P 500 up 1.02% and the Nasdaq‑100 gaining 0.98%, while the Russell 2000 led with a 2.21% advance. Communication Services, Industrials, and Utilities outperformed, while Information Technology lagged.

Apple Tops Q2 Estimates, as Services Strength Offsets iPhone Supply Constraints

Apple (AAPL) reported a strong fiscal Q2, topping expectations on both the top and bottom lines, with revenue of $111.18 billion and EPS of $2.01, both ahead of consensus estimates, according to Reuters. Strength was broad-based, led by Services, Mac, iPad, and Wearables, while Greater China sales also exceeded forecasts, though iPhone revenue came in essentially in line with expectations. The company declared a $0.27 quarterly dividend and authorized an additional $100 billion share repurchase program, reinforcing its capital return commitment. CEO Tim Cook noted that iPhone sales were constrained during the quarter by limited supply of advanced-node chips, suggesting some demand was unmet.

Meta Beats on Revenue as User Metrics Miss

Meta (META) reported a strong Q1 marked by accelerating revenue growth and a powerful advertising engine, but the results were overshadowed by a sharp decline in user metrics and higher long-term spending expectations. Revenue rose 33% year over year to $56.31 billion, the fastest pace since 2021, while adjusted EPS of $7.31 beat estimates, helped by robust growth in ad impressions and pricing. However, Daily Active People missed expectations and fell sequentially, which management attributed to internet disruptions in Iran and WhatsApp restrictions in Russia, adding to investor concerns. Meta also raised its full-year 2026 capex outlook to as much as $145 billion, citing higher infrastructure and component costs tied to AI investment.

Economic Data for Tomorrow (ET)

• 9:45 am
• Final Manufacturing PMI
• 10:00am
• ISM Manufacturing PMI
• ISM Manufacturing Prices

Earnings Calendar

Before Market Open: AON, AN, BEP, CBOE, CVX, CHD, CNK, CL, D, EL, XOM, LEA, LIN, LYB, MRNA, NWL, TEX

After Market Close: N/A

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