Small cap warning? | Tesla 'debacle' | Another deal for Disney

Small caps relative underperformance may be a bearish signal.

VIEW IN BROWSER | SUBSCRIBE THU, APR 25, 2019 EVENING BRIEF AS OF THU, APR 25, 2019 • 04:00 ET DJIA 26465.06 -0.50% -131.99 S&P 500 2926.34 -0.03% -0.91 NASDAQ 8118.68 +0.21% +16.67   Most Active DOW NAME LAST CHG %CHG MSFT 129.15 +4.14 +3.31% INTC 57.61 -1.11 -1.89% AAPL 205.28 -1.88 -0.91% S&P 500 NAME LAST CHG %CHG GE 9.12 -0.20 -2.15% AMD 27.66 -0.80 -2.81% FB 193.26 +10.68 +5.85% NASDAQ NAME LAST CHG %CHG AMD 27.66 -0.80 -2.81% FB 193.26 +10.68 +5.85% MSFT 129.15 +4.14 +3.31%   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. Kate Rooney | CNBC Markets Reporter @Kr00ney TOP NEWS  Dow slides after 3M earnings miss The feared 'earnings recession' is not showing up in the first-quarter numbers Comcast is in talks to sell its 30% stake in Hulu to Disney April job gains could be way better than expected if the BofAML forecast is right Tesla profitability will not 'magically return,' analyst says, as Q1 was a 'debacle' for Musk Buffett says investors would be served just as well buying an S&P fund as his own company's stock Cramer's bold prediction: Facebook soon gets back to all-time highs — over 10% above its current share price NY Gov. Andrew Cuomo plans to open his formidable fundraising network to Joe Biden's 2020 campaign Vanguard to surrender some of its corporate voting power to external fund managers Chipotle's stock drops after the company discloses subpoena related to 2018 illness incident   CNBC PRO Goldman's commodity analyst breaks down the crude oil surge     TOP VIDEO Watch CNBC's exclusive interview with Steve Bannon and Kyle Bass   SPECIAL REPORTS Facebook is soaring on earnings. Three experts weigh in Stocks aren't out of the woods even though earnings recession isn't happening   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2019 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS