The stock market slid on Thursday as first-quarter GDP data came in lower than expected. The U.S. economy expanded 1.6% in the first quarter of 2024, compared to estimates of 2.5%. Such was the slowest growth in almost two years.
Overall, S&P 500 fell 0.5% to 5,048, while NASDAQ declined 0.6% to 15,612.
Tweet of the Day
SUMMARY OF FED CHAIR POWELL'S COMMENTS (4/16/24):
1. Recent data "shows lack of further progress on inflation"
2. Inflation has "introduced new uncertainty" on whether the Fed can cut rates later this year
3. Fed can maintain higher rates for "as long as needed"
4. Recent…
— The Kobeissi Letter (@KobeissiLetter) April 16, 2024
Chart of the Day
Here is the ten-year chart of Accenture (ACN) as of April 2, 2024, when the stock was at $336.
Accenture saw a significant selloff after the earnings report was released. The stock price fell from $380 to $345 the day after earnings were reported mainly because of the cut in guidance range from management. Accenture lowered its guidance range for revenue growth from “2% to 5%” to “-1% to 3%”. As such, analysts reduced 2024 profit estimates from $12.23 to $12.10. Quarterly estimates declined too. Management noticed that clients are focusing more on big projects that take longer to make money, and they are spending less on smaller ones. Also, decisions are taking longer, and spending is slower.
ACN is part of the Conservative Growth Portfolio.
