Stocks have taken a turn to the downside after a report from The Information that Microsoft has lowered its AI sales quotas.
- The company has lowered expectations for how quickly it can get its customers to spend on newer products, specifically agents.
- Multiple divisions have reduced how much salespeople need to grow sales of certain AI products by, after many missed sales growth roles in fiscal year that ended in June
The NASDAQ index is now trading down -83 points. The S&P futures are implying a decline of -7 points.
Shares of Microsoft are trading down -1.97% at $480 after closing at $490 yesterday.
In a post yesterday ("Why the stock market is not out of the woods just yet"), I wrote how Microsoft was testing its falling 100 hour moving average. That moving average comes in at $491.75. The price ticked above that level during intraday trading yesterday to a high price of $493.45, but could not sustain momentum and closed below that level at the $490, keeping the sellers in control.
Traders would need to get above that moving average to tilt the technical bias more to the upside at least in the short term. Absent that and they sellers are more in control (in the short term).
