Zions shares drop after earnings
Shares of Zion Bank Corp fell more than 2% despite the regional bank beating fourth-quarter profit expectations. Zions reported $1.84 in earnings per share, above the $1.65 analysts expected, according to StreetAccount. Net interest income also beat estimates.
However, noninterest income was lower than expected and deposits fell 13% year over year to $71.7 billion.
Shares of Zion gained 2.27% in regular trading Monday before earnings release.
Stocks must reach this important level to potentially be considered a rally, says Dawson
According to NewEdge Wealth’s Cameron Dawson, shares rose Monday, but are not high enough to be considered a true market rally.
“We need to get through the most critical level of 4,100,” Dawson said on CNBC’s “Closing Bell: Overtime” on Monday. That’s because 4,100 is the S&P 500’s 65-day high.
The S&P 500 never reached key moving levels in 2022 because it was in a downtrend, Dawson said. If stocks break this level, it could indicate that the rally has the potential to move into another bull market cycle.
Technical data and positioning can only get stocks so far, she added, before a fundamental shift is needed to really boost stocks.
“We would need to see a change in fundamentals to really think this rally will continue,” she said.
She warned that the rise in stocks is likely to be contained until the Federal Reserve is fully operational and the US economy is stimulated again.
“We are unlikely to be able to go back to pre-pandemic multiples without help from the Fed,” she said.
If stocks are able to rise 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 open little changed
Futures opened little changed Monday evening after solid gains for stocks during regular trading hours. There were no post-bubble large cap earnings reports to trigger major moves in the futures market.
— Jesse Pond
Nasdaq, chip stocks led the way on Monday
Stocks enjoyed a broad 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 with 36 points.
- The VanEck Semiconductor ETF (SMH) rose 4.72% for its best day since Nov. 30.
—Jesse Pond, Christopher Hayes