EDITOR'S NOTE
Small caps were leaders in the two most recent market rebounds. They're lagging at the back half of this rally, though, which may be a bearish signal. Such stocks, which have a market capitalization of less than $2 billion, originally kept pace as markets surged back from December lows. But since late February, the Russell 2000, an index of small-cap names, is in the red. The S&P 500 is up more than 4% in the same time period. ![]() For chart analysts, weak small-cap shares mean the market has poor so-called breadth. The underperformance could have macroeconomic implications since smaller companies are generally more vulnerable to economic cycles. Ed Clissold, chief U.S. strategist at Ned Davis Research, said the group's "underperformance can be a recession warning" and has become a favorite point of emphasis for bears. While the small-cap warning shouldn't be an outright sell signal, Clissold said it definitely warrants more analysis. TOP NEWS
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Stocks making the biggest moves midday: L Brands, Estee Lauder, CureVac, Tesla & more This is a developing news story. Please check back for updates: https://www.cnbc.com/2020/08/20/stocks-making-the-biggest-moves-midday-l-brands-estee-lauder-curevac-tesla-more.html Follow @CNBCnow for breaking news and real-time market updates Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy CNBC Events © 2020 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 D
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