Good afternoon and welcome to Markets Desk.
Microsoft's earnings are sending ripples through the chip sector today, with Micron, Sandisk, and their peers catching a strong bid after the software giant reported heavy AI infrastructure spending while reassuring analysts it remains disciplined on costs. The read-through is straightforward — sustained hyperscaler demand keeps the memory and storage cycle intact.
Shifting to soft commodities, arabica coffee futures are slipping modestly on a dry weather forecast for Brazil's key growing regions over the next week. Dry conditions typically aid the harvest and ease supply concerns, which pulls prices lower. Robusta is moving the other direction, up nearly one percent, reflecting divergent supply dynamics between the two varieties.
And on the consumer side, Starbucks is testing carbonated versions of its popular refresher drinks in select markets as CEO Brian Niccol leans into non-coffee beverages to drive growth. The refreshers line is already posting double-digit year-over-year gains, and the move signals a deliberate effort to capture younger customers who may never order an espresso but will absolutely buy a fizzy fruit drink.
That's the tape. Markets Desk, signing off the floor.
