The stock market sank on Thursday, dragged down by disappointing earnings and commentary from Tesla (TSLA) and Netflix.
Overall, S&P 500 declined 0.7% to 4,535, while NASDAQ fell 2.1% to 14,063.
Tweet of the Day
The market is overbought here seen on the McClellan oscilllator and we are due for a short term pullback but the pullback should be bought. There is probably 3-4% downside in the Nasdaq on a pullback. We are focusing on stocks only at 52 week highs or all time highs on the… pic.twitter.com/xxrqJNQbrb
— Roy Mattox (@RoyLMattox) July 20, 2023
Chart of the Day
Here is the ten-year chart of Accenture (ACN) as of July 5, 2023, when the stock was at $310.
Accenture helps companies and organizations solve business challenges and transform their organizations. Employing more than 700,000 people, the company serves more than three-fourths of the Fortune Global 500. Enterprises use Accenture for Consulting on what to do, then utilize its Outsourcing divisions including finance, accounting, supply chain, marketing, and sales to get work done.
Accenture has delivered less than 10% profit growth for two straight quarters, and estimates are for below 10% growth for the next four quarters. The reason for the single-digit profit growth is a sluggish economy that has caused businesses to be diligent on spending. However, Artificial Intelligence (AI) has ushered in a boost in positivity. Such has gotten CEOs in thinking that they need to spend to keep up with the trend.
Accenture management thinks AI is in its early stages, like the loud was over a decade ago. The company has been investing in AI for years, and just announced a $3 billion investment in AI and to double its workforce in the space from 40,000 to 80,000. The company has sold over 100 Generative AI profits for the past four months.
ACN is part of the Conservative Growth Portfolio.
