Small Caps Test Their 200-Day Line as Yields Grind Higher and Earnings Season Stirs
Key Highlights
- ➤Conagra Brands (CAG) Q1 net sales fell 1.4% to $2.6 billion
- ➤Adjusted EPS rose 5.1% to $0.41, ahead of expectations
- ➤Fiscal 2027 guidance reaffirmed: adjusted EPS $1.40-$1.50
- ➤Fiscal 2027 adjusted operating margin guidance reaffirmed at 10.0%-10.5%
Expert Statements
John Brase, President and Chief Executive Officer of Conagra Brands
“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.”
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.
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