Weekly Losses Deepen As Small Caps Lag And Yields Edge Higher Into Earnings Gauntlet

Stock Preachers News Commentary

NEW YORK, Oct. 1, 2026 /CNW/ -- Stocks closed out a choppy week on the back foot, with the Dow shedding nearly 2% and small caps underperforming as the Russell 2000 fell more than 1% on the week. The 10-year Treasury yield ticked up 6 basis points even as the VIX stayed contained near 17. Against that backdrop, a wave of earnings reports landed, giving traders fresh evidence on how margins and demand are holding up heading into the final quarter. Active Companies from around the markets with current developments this week include: McCormick & Company, Incorporated (NYSE: MKC), Conagra Brands, Inc. (NYSE: CAG), Recon Technology, Ltd (Nasdaq: RCON), Yiren Digital Ltd. (NYSE: YRD), and RedHill Biopharma Ltd. (Nasdaq: RDHL).

The major averages all finished the week lower. The Dow Jones Industrial Average closed at 50,826.17, down 1.93% on the week, while the S&P 500 slipped 1.25% to 7,646.79 and the Nasdaq Composite eased 0.90% to 26,825.83. The Russell 2000 underperformed the large caps on a four-session week, down 1.16% to 2,804.63, with its RSI14 at 32 signaling the small-cap gauge is flirting with oversold territory.

Volatility ticked higher but remained subdued. The VIX closed at 16.96, up 0.89 points on the week and within its 15.62 to 17.59 range, while the Nasdaq-100 volatility gauge (VXN) climbed 2.11 points to 22.98. The 10-year Treasury yield rose 6 basis points on the week to 5.24%, even after a 5 basis point pullback on the day, adding pressure to rate-sensitive corners of the market.

Commodities were mixed. Gold held near $4,191.20 an ounce, up 0.55% on the week, while silver slipped 0.65% to $60.83. WTI crude eased 0.49% on the week to $92.15 a barrel despite a 1.91% daily pop, and natural gas fell 1.23% on the week to $2.96. Copper dipped 0.41% to $6.54 a pound, and the euro slid 1.34% against the dollar to 1.12.

The full report maps out key support and resistance levels for each index, tracks sentiment across the week's earnings slate, and previews the data and events traders are watching next week.

CONTINUED... Read the full Roadmap report, "A Choppy Week Leaves the Tape Looking for Footing," at: https://stockpreachers.com/articles/a-choppy-week-leaves-the-tape-looking-for-footing/

In other industry developments and happenings in the market this week include:

McCormick & Company, Incorporated (NYSE: MKC) McCormick reported third quarter net sales up 17.4%, including a 0.9% favorable currency impact, with organic sales growth of 1.9%. Gross profit margin expanded 190 basis points versus the prior year, while adjusted gross profit margin expanded 180 basis points. Adjusted operating income rose to $359 million from $294 million a year earlier, and adjusted earnings per share was $0.86 versus $0.85 in the year-ago period.

Chairman, President, and CEO Brendan M. Foley said, "Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment. We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins."

The company reaffirmed its fiscal 2026 outlook for net sales growth, adjusted operating income and adjusted earnings per share, and said it remains confident in the strategic benefits of its proposed combination with Unilever Foods, having made substantial progress on integration planning. Read the release.

Conagra Brands, Inc. (NYSE: CAG) Conagra reported first quarter fiscal 2027 net sales down 1.4%, with organic net sales down 1.1%. Reported operating margin was 10.3% while adjusted operating margin was 11.5%. Reported diluted earnings per share rose 5.9% to $0.36, and adjusted earnings per share increased 5.1% to $0.41.

The company reaffirmed fiscal 2027 guidance of organic net sales change between negative 3% and negative 1%, adjusted operating margin of 10.0% to 10.5%, and adjusted earnings per share between $1.40 and $1.50. Read the release.

Recon Technology, Ltd (Nasdaq: RCON) Recon Technology reported fiscal year 2026 total revenue of RMB109.9 million ($16.2 million), up 65.8% from RMB66.3 million a year earlier. Gross margin improved to 33.2% from 23.0%, while net loss narrowed to RMB31.6 million ($4.7 million) from RMB43.7 million ($6.4 million) in the prior year.

Founder and CEO Shenping Yin said, "Fiscal 2026 marked a significant turning point for Recon. Revenue increased by 65.8% to RMB109.9 million, and gross margin was lifted to 33.2%... The primary growth driver was our strategic expansion into overseas oilfield projects."

The company also marked the commencement of operations at its waste plastic chemical recycling plant in Weifang, Shandong Province, designed to process 40,000 tons of low-value waste plastics per year with an expected output of 30,000 tons of pyrolysis oil and 6,000 tons of carbon residue. Read the release.

Yiren Digital Ltd. (NYSE: YRD) Yiren Digital reported second quarter 2026 total loans facilitated of RMB6.3 billion, down 29% from RMB8.9 billion in the first quarter and down 69% year over year. Repeat borrowers accounted for 82% of total loans facilitated, up from 78% in the prior quarter, while 31-60 day and 61-90 day delinquency rates declined to 2.0% and 2.4% respectively.

Insurance client growth remained strong, with insurance clients up 281% year over year and new policies up 177% year over year. Insurance brokerage revenue increased 16% year over year.

On July 2, 2026, the company's board authorized a new share repurchase program of up to $20.0 million over the following 12 months. Read the release.

RedHill Biopharma Ltd. (Nasdaq: RDHL) RedHill Biopharma reported it has acquired exclusive global and U.S. commercialization rights to Rebyota and Clenpiq for a $12 million upfront cash payment, funded by $18 million received upfront from its Talicia divestment. The two GI brands generated approximately $37.5 million in 2025 net sales under Ferring Pharmaceuticals, with Rebyota alone contributing approximately $16.9 million in U.S. net sales in 2025.

Chief Executive Officer Dror Ben-Asher said, "We have executed on two major transactions that unlock significant value and fuel our capacity for growth... This improves our liquidity position and provides us with control to drive increased revenues, identify additional complementary revenue-generating products and support ongoing development of our assets."

The company also divested its 70% stake in Talicia for $18 million upfront, plus up to $35 million in potential worldwide net sales milestone payments, while continuing development of its oncology and Crohn's disease pipeline. Read the release.

Article Source: https://stockpreachers.com/articles/a-choppy-week-leaves-the-tape-looking-for-footing/

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