Small Caps Test Their 200-Day Line as Yields Grind Higher and Earnings Season Stirs
SAN FRANCISCO, Oct. 01, 2026 (GLOBE NEWSWIRE) -- USA Newsroom News Commentary - This has been a week of slow leaks
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SAN FRANCISCO, Oct. 01, 2026 (GLOBE NEWSWIRE) — USA Newsroom News Commentary – This has been a week of slow leaks rather than blowouts for U.S. stocks. As of midday Thursday, the Dow Jones Industrial Average, the S&P 500, the Nasdaq Composite and the Russell 2000 were all lower for the week, with small caps taking the hardest hit as the 10-year Treasury yield climbed 6 basis points on the week to 5.24%, according to the latest edition of The Roadmap from Stock Preachers. At the same time, a fresh batch of company results is starting to show which businesses are protecting their margins in a tougher cost environment. Active companies with developments this week include: McCormick & Company, Incorporated (NYSE: MKC), Conagra Brands, Inc. (NYSE: CAG), WTW (Nasdaq: WTW), RedHill Biopharma Ltd. (Nasdaq: RDHL), and Recon Technology, Ltd (Nasdaq: RCON).
By the midday numbers, the Dow sat at 50,850.02, down 1.89% for the week but still up 5.8% on the year. The S&P 500 was at 7,648.36, off 1.23% this week with an 11.73% year-to-date gain intact, while the Nasdaq Composite held at 26,821.12, down 0.91% for the week and up 15.4% for the year. The Russell 2000 was the laggard at 2,800.92, down 1.29% since last Friday, and its 14-day RSI of 30.9 was the lowest of the four, a sign that small caps have absorbed the brunt of the selling.
The levels now in play are close at hand. The Russell 2000 is testing its 200-day simple moving average at 2,780.01, the S&P 500 is parked just below its 50-day SMA at 7,650.99, and the Dow is holding above its 200-day SMA near 50,260.45. Volatility has firmed as well: the VIX was at 16.95 and the Nasdaq-100 volatility gauge, the VXN, was at 23.13, up 2.26 points for the week, suggesting traders are paying up for protection in tech and growth names. The full support and resistance ladders for all four major indices are laid out in The Roadmap.
CONTINUED… Read this and more, including the week’s leaders and laggards and the levels to watch into next week, at Stock Preachers: https://stockpreachers.com/articles/a-choppy-week-leaves-the-tape-looking-for-footing/
In other company developments and happenings in the market this week:
McCormick & Company, Incorporated (NYSE: MKC) reported third quarter results and reaffirmed its fiscal 2026 outlook. The company said net sales increased 17.4%, with organic sales growth of 1.9%, and that gross profit margin expanded by 190 basis points versus the prior year. Earnings per share was $0.36 compared with $0.84 a year earlier, while adjusted earnings per share was $0.86 compared with $0.85.
McCormick also said it remains on track with integration planning for the proposed Unilever Foods combination. “Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment,” said Brendan M. Foley, Chairman, President, and CEO. “We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins.” Read the release.
Conagra Brands, Inc. (NYSE: CAG) reported first quarter fiscal 2027 results, with net sales down 1.4% to $2.6 billion and organic net sales down 1.1%. Adjusted earnings per share rose 5.1% to $0.41, and the company reaffirmed its fiscal 2027 guidance, including an adjusted operating margin between 10.0% and 10.5% and adjusted EPS between $1.40 and $1.50. Conagra said it gained dollar share in categories including frozen vegetables, pudding and chili.
“We delivered a solid start to fiscal 2027 with top line results largely in line with expectations and profit ahead of expectations amid a challenging operating environment,” said John Brase, president and chief executive officer of Conagra Brands. Read the release.
WTW (Nasdaq: WTW) said its Willis business released the fall 2026 edition of its Insurance Marketplace Realities report, which found that large and complex commercial property rates fell an average of 14.5 percent in the second quarter of 2026, compared with 8.4 percent a year earlier. Shared and layered programs saw average declines of 23.41 percent, and the report said the market has moved toward pricing last seen in 2019.
“Property buyers have room to negotiate this cycle. Casualty and specialty buyers need to plan for a market that is still correcting for verdict severity and emerging technology risk,” said Jackie Bolig, Head of Placement and Broking Solutions for North America at Willis. Read the release.
RedHill Biopharma Ltd. (Nasdaq: RDHL) reported first half 2026 results and outlined a portfolio reset around two FDA-approved gastrointestinal brands. The company said it made a $12 million upfront payment to Ferring Pharmaceuticals for commercialization rights to Rebyota and Clenpiq, fully funded by the $18 million it received upfront for its Talicia divestment. RedHill said the two products generated approximately $37.5 million in 2025 net sales under Ferring.
“We have executed on two major transactions that unlock significant value and fuel our capacity for growth,” said Dror Ben-Asher, RedHill’s Chief Executive Officer. Read the release.
Recon Technology, Ltd (Nasdaq: RCON) reported fiscal 2026 results, with total revenue up 65.8% to RMB109.9 million ($16.2 million) and gross margin rising to 33.2% from 23.0%. The company said its net loss narrowed to RMB31.6 million ($4.7 million) from RMB43.7 million a year earlier, with overseas oilfield projects the primary growth driver.
Recon also marked the start of operations at its waste plastic chemical recycling plant in Weifang, Shandong Province, which it said is designed to process 40,000 tons of low-value waste plastics per year. “Fiscal 2026 marked a significant turning point for Recon,” said Shenping Yin, Founder and Chief Executive Officer. Read the release.
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