Zions shares fall after earnings
Shares of Zions Bancorp fell more than 2% as the regional bank beat fourth-quarter profit estimates. Zions reported earnings per share of $1.84, better than analysts expected $1.65, according to StreetAccount. Net interest income also exceeded estimates.
However, non-interest income was below expectations and deposits fell 13% year-over-year to $71.7 billion.
Zion shares gained 2.27% in regular trading on Monday ahead of its earnings release.
Stocks must reach this key level to potentially be considered a rally, says Dawson
Stocks rose on Monday, but are not high enough to be considered a real market rally, according to NewEdge Wealth’s Cameron Dawson.
“We need to get past the most critical level of 4,100,” Dawson said on CNBC’s “Closing Bell: Overtime” Monday. That’s because 4,100 is the 65-day high of the S&P 500.
The S&P 500 never reached the key moving level in 2022 because it was in a downtrend, Dawson said. If stocks break through this level, it may indicate that the rally has the potential to move into a new bull market cycle.
Techniques and positioning can only get stocks so far, she added, before a fundamental shift is needed to really give stocks momentum.
“We would need to see a change in the fundamentals to really think this rally is going to continue,” she said.
She warned that bullish stocks will likely remain capped until the Federal Reserve fully pivots and stimulates the US economy again.
“It’s unlikely that we can get back to pre-pandemic multiples without help from the Fed,” she said.
If stocks are able to rally and break the 65-day high, it would also likely reduce the likelihood of the S&P 500 retesting its October lows, Dawson said.
Stock futures are little changed
Futures were little changed on Monday night after strong gains for stocks during regular trading hours. There were no large-cap earnings reports after the bell to trigger major moves in the futures market.
Nasdaq, chip stocks led the way on Monday
Stocks rallied broadly on Monday. Here’s a look at some of the key numbers from the trading session.
- The Dow gained 254 points, or 0.76%, to close at 33,629.56.
- The S&P 500 gained 47 points, or 1.19%, to close at 4,019.81.
- The Nasdaq Composite gained 224 points, or 2.01%, to close at 11,364.41.
- Nvidia had the biggest impact on the Nasdaq, adding 36 points.
- ETF VanEck Semiconductor (SMH) rose 4.72% for its best day since Nov. 30.
—Jesse Pound, Christopher Hayes