Stock Market Update

[BRIEFING.COM] The major averages continue to steadily trade higher this morning.

The latest batch of earnings reports is generating some notable stock-specific moves, with Accenture (ACN 131.82, -24.19, -15.51%) the worst-performing S&P 500 sector after its Q3 earnings release this morning. Today's weakness extends what has already been a difficult year for the stock as investors have grown more concerned about soft discretionary consulting demand, U.S. federal weakness, and the pace at which AI-related work is converting into reported growth. The company beat EPS expectations, while revenue increased 5.6% year-over-year to $18.72 billion, roughly in line with expectations. The larger concern appears to be the forward setup, as new bookings declined year-over-year and Accenture trimmed its FY26 revenue growth outlook to 3% to 4% in local currency, down from 3% to 5%.

The Middle East conflict added another layer of pressure, with management citing a revenue impact in consulting-type work, weaker sales activity in the region, and longer decision-making in EMEA. That is exacerbating the broader concern around whether demand is converting quickly enough.

Accenture's move weighs on the broader IT services sector, with IBM (IBM 247.67, -14.68, -5.60%) the worst-performing Dow component.