Zions shares fall after earnings
Actions of Zions Bancorp fell more than 2% despite the regional bank beating estimates for fourth-quarter earnings. Zions reported $1.84 in earnings per share, above the $1.65 expected by analysts, according to StreetAccount. Net interest income also beat estimates.
Non-interest income, however, was lower than expected, and deposits fell 13% year-over-year to $71.7 billion.
Shares of Zion rose 2.27% in regular trading on Monday before its earnings were announced.
— Jesse Pound
Stocks need to reach this key level to potentially be considered recovered, Dawson says
Stocks rose on Monday, but not high enough to be considered a true market rally, according to NewEdge Wealth’s Cameron Dawson.
“We have to break through the most critical level of 4,100,” Dawson said Monday on CNBC’s “Closing Bell: Overtime.” That’s because 4,100 is the S&P 500’s 65-day high.
The S&P 500 never reached a key moving level in 2022 because it was in a downtrend, Dawson said. If the stock breaks this level, it may indicate that the rally has the potential to transition into a new bull market cycle.
Technicals 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 gains in stocks are likely to remain limited until the Federal Reserve fully turns around and re-stimulates the US economy.
“It is unlikely that we can return to pre-pandemic multiples without the Fed’s help,” she said.
If stocks are able to rally and break the 65-day high, that would also likely reduce the likelihood of the S&P 500 retesting the October lows, Dawson said.
– Carmen Rajnik
Stock futures open little changed
Futures were little changed on Monday night after solid gains for stocks during regular trading hours. There were no reports of big capital gains after the bell to trigger big moves in the futures market.
— Jesse Pound
Nasdaq, chip stocks led the way on Monday
Stocks enjoyed a big rally 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.
- VanEck Semiconductor ETF (SMH) rose 4.72% for its best day since November 30.
— Jesse Pound, Christopher Hayes