The stock market closed lower on Wednesday as investors awaited earnings from AI stock favorite NVIDIA (NVDA). In addition, minutes from the Federal Reserve’s May meeting indicated that rate cuts may not come sooner.
Overall, S&P 500 fell 0.3% to 5,307, while NASDAQ declined 0.2% to 16,802.
Tweet of the Day
If you are holding too many technology stocks, consider names in other groups: AGI, NVO, GNRC, KKR and GE.
— David Ryan (@dryan310) May 15, 2024
Chart of the Day
Here is the ten-year chart of ServiceNow (NOW) as of April 30, 2024, when the stock was at $693.
In last quarter’s earnings call, ServiceNow management stated that iconic brands are adopting Now Assist AI as a standard for their Generative AI (GenAI) road maps. Now Assist AI is a smart virtual assistant for businesses, automating tasks and providing quick answers to employee queries. ServiceNow expanded its relationship with Microsoft (MSFT) to include new GenAI capabilities to integrate CoPilot with Now Assist AI. A handful of the iconic brands that are adopting Assist AI as a standard include: Hitachi Energy, Equinix, IBM, Novartis and BNY Mellon.
ServiceNow not only sees budgets going up in IT, but also sees GenAI becoming more of a business imperative. They see GenAI only as powerful as the platform it is built on. The company predicts that every business workflow in every enterprise will be engineered with GenAI.
NOW is a core holding in the Growth Portfolio and Aggressive Growth Portfolio.
