Amazon joins other tech companies in cost-cutting moves
On Friday, the Labor Department reported the U.S. economy added 261,000 jobs in October, exceeding economist estimates of 205,000 jobs. Tesla CEO Elon Musk acquired Twitter in late October for $44 billion and began the process of firing roughly 3,700 staffers on Friday. Amazon’s hiring freeze came the same day ridesharing company Lyft announced it is laying off 13% of its employees and payment technology company Stripe said it is laying off 14% of its staff.
Investors will get key economic updates on Thursday when the U.S. Labor Department releases its October consumer price index inflation reading and on Friday when the University of Michigan releases its November consumer sentiment index reading.
The stock market pulled back in the opening days of November after the Dow Jones Industrial Average gained 14% in October , its best month since 1976.On Friday , the Labor Department reported the U.S. economy added 261,000 jobs in October , exceeding economist estimates of 205,000 jobs. Wages were up 4.7% year-over-year and increased 0.4% from September.On Wednesday, the Federal Open Market Committee raised its fed funds target range by 0.75% to between 3.75% and 4%. The move marks the fourth 0.75% rate hike for the Fed in five months as it continues to battle inflation .On Friday , five current and former Twitter employees sued the company, claiming workers were not given enough notice about mass layoffs . Tesla CEO Elon Musk acquired Twitter in late October for $44 billion and began the process of firing roughly 3,700 staffers on Friday .Amazon also announced on Thursday that it will be freezing hiring heading into the busy holiday shopping season, the latest of a series of big-name tech companies to pause hiring or announce layoffs. Amazon’s hiring freeze came the same day ridesharing company Lyft announced it is laying off 13% of its employees and payment technology company Stripe said it is laying off 14% of its staff.Twilio shares traded lower by 36% on Friday after the cloud-based software company reported a $482 million net loss in the third quarter and spooked investors with soft sales guidance.In the week ahead, investors will get more quarterly reports from Activision Blizzard on Monday, Walt Disney and Occidental Petroleum on Tuesday and NIO on Thursday.
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Excluding the Energy sector, S&P 500 companies are reporting their second consecutive quarter of negative revenue growth, according to FactSet.
Investors will get key economic updates on Thursday when the U.S. Labor Department releases its October consumer price index inflation reading and on Friday when the University of Michigan releases its November consumer sentiment index reading.
