Small-Caps Lead a Broad Rally as Tech Bounce Stalls
Easing long-term yields and oil prices lifted the Russell 2000 to its best day since early August and saw 9 of 11 S&P 500 sectors higher, even as weakness in Tech dragged on the cap-weighted index.
Netflix Shares Drop After Cutting Sales Forecast
Netflix ($NFLX) shares are down over 5%, even as it beat on third-quarter earnings, after guiding fourth quarter sales below estimates. That would be a fourth straight quarter of slowing sales growth. If the decline holds, it would put the shares at the lowest levels since August 2024.
The pace of growth has fallen from 17.6% in the final quarter of last year to a projection of 11.5% for this year’s fourth quarter. The company blamed its sales shortfall on the advertising business, which is on pace to deliver $300 million less than the company expected according to Bloomberg.
My View on Netflix
Repeating for emphasis, I would not bottom fish in Netflix ($NFLX).
I expect in line-to-better 2Q2026 results but a possible lower forward guidance as margins are pressured.
From last month:
Netflix Is Too Low to Short and Too High to Buy
I would continue to avoid buying (and “bottom fishing”) in Netflix (NFLX) for the reasons I have previously mentioned:
* Netflix has nearly saturated the domestic market (as well as many other developed countries). These markets are significantly more profitable than the non developed arena.
* Future Netflix sales/profit growth will come from developing country markets that provide substantially less revenue (and income) per subscriber.
* Netflix’s original content programming has been unspectacular over the last 12 months (or more) — and existing content has suffered.
In the past I have been short NFLX, but it is no longer priced as an attractive short.
Position: None
BY Doug Kass · Sep 22, 2026, 1:50 PM EDT
Position: None
South Korea’s Ants Renew AI and Data Center Pressure: 8 Key Items Shaping the Stock Market Tuesday
Ryanair CEO on airline fares, OpenAI races to complete fundraising round and other headlines moving the market this morning.
Rally Dreams, Millions of Jobs on Thin Ice, Canada Keeps It Together
Can the rally realistically continue another day? Also, when taken together, these 4 charts show a shaky situation for tens of millions of workers.
Are You Ready for a Stock Picker’s Market?
Seventy percent of active managers are trailing their benchmarks, and the pressure to catch up could trigger a focus on stock picking.
Tech Bounces Back but Rising Yields Pressure Non-Tech
The megacap growth sectors went from worst (Friday) to first (Monday) as chipmakers snapped an eight-session losing streak, but rising Treasury yields left seven sectors, the Dow Jones Industrial Average, and the equal-weight S&P 500 lower.
A Look Back on a Very Dark Day on the Market
Remembering Oct. 19, 1987; also an AI warning from Wall Street Journal and a check on the market’s charts.
The Week Ahead: The Rotation Continues
AI worries are pressuring Tech and sending yields lower as we embark on a heavy earnings week including several names in the cross-hairs.
Tracking 39 Fresh Portfolio Signals Across 10 Investing Themes
Let’s scan through the headlines for the stories of the week that speak to our Pro Portfolio holdings.