Skeptical investors might believe that growth companies do not lay off workers. When Tesla (TSLA) planned to cut at least 14,000 staff, it indicated that supply far exceeded demand for electric vehicles.
Investors should not ignore a report that Microsoft plans to lay off thousands of workers at its Azure cloud unit. The firm may cut as many as 1,500 jobs in the Azure of Operators unit. Investors might assume that demand for cloud-based subscriptions is losing momentum. So long as Microsoft is increasing its developments in ChatGPT, the news is not necessarily bad.
In the soft drink sector, Beverage Digest, a trade publication, reported that Dr Pepper overtook Pepsi (PEP) as the second biggest soda brand. Coke (KO) took 19.2% of the market share last year, while both Dr. Pepper and Pepsi had an 8.3% market share.
Watch Treasury Bond Yields
Ahead of the U.S. job report this Friday, U.S. Treasury bond yields pulled back. The 30-year T Bill yield fell by 2.43%. The 1-month T bill yield rose by 0.19%. Weak job growth would increase the chances of the Federal Reserve considering a rate cut. Realistically, core inflation rates are too high. The Fed is unlikely to change rates until the Fall. The central bank will need to review the summer inflation figures before hinting at any changes to interest rates.
