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ZIONN - Zions Bancorporation NA News Story

$25.42 -0.1  -0.2%

Last Trade - 05/05/21

Sector
Financials
Size
Large Cap
Market Cap £6.77bn
Enterprise Value £8.88bn
Revenue £2.01bn
Position in Universe 978th / 6846

LIVE MARKETS U.S.-Banks rally as investors shift money from growth to value

Fri 4th September, 2020 3:43pm
* Major averages mixed fall; Nasdaq down >4% * All major S&P 500 sectors down; financials down least * Tech, comm svcs weakest groups; value outperforming growth * Dollar gains; gold, crude fall; U.S. 10-yr yield ~0.67% NEW YORK, Sept 4 (Reuters) - Welcome to the home for real-time coverage of U.S. equity markets brought to you by Reuters stocks reporters and anchored today by Terence Gabriel. Reach him on Messenger to share your thoughts on market moves: terence.gabriel.tr.com@reuters.net BANKS RALLY AS INVESTORS SHIFT MONEY FROM GROWTH TO VALUE (1031 EDT/1431 GMT) Shares in the battered U.S. bank sector are climbing on Friday while technology stocks continue to sell off as investors switched their focus from growth to value stocks. The S&P 500 bank index .SPXBK is up 1.2%, and on track for its biggest one-day percentage gain since Aug 27, after jumping as much as 3.5% earlier in the session. The sector was still down 31.8% year to date. Its biggest percentage gainers include People United Financial PBCT.O and Zion Bancorp ZION.O , both up around 3%. The S&P Financial sector .SPSY is now roughly flat. One factor helping the sector is reports of continued progress in the development of COVID-19 treatments and vaccines, according to R.J. Grant head of trading at Keefe, Bruyette & Woods in New York, which specializes in financial stocks. "The banks, the only time they seem to rally is when people are feeling good about the reopening," said Grant, noting that announcements this week from companies including Pfizer PFE.N about vaccine development helped the sector. That, and a rotation out of market outperformers such as technology into market laggards including financials. "This tech trade got a little long in the tooth. There was money indiscriminately piling into tech," said Grant "The big trade has been owning growth which is tech and being short or uninvolved in value names such as banks. The long growth short value trade had gotten a little extended," he said. (Sinéad Carew) ***** S&P 500: REPULSED! (1001 EDT/1401 GMT) After advancing as much as 64% from its March low, the S&P 500 .SPX was repulsed by a log-scale resistance line. And now, after its worst day since June, amid a tech wreck urn:newsml:reuters.com:*:nL1N2G012E urn:newsml:reuters.com:*:nL1N2FS1GE, the benchmark index is on the verge of ending its 5-week win streak. (Click on chart below) Meanwhile, a bearish divergence on a weekly momentum study suggests risk for a more severe retreat. Indeed, the SPX was extended and severely overbought as it tested a number of resistance lines this week. urn:newsml:reuters.com:*:nL1N2FZ0BG With its thrust to a high of 3,588.11 on Wednesday, the SPX managed to extend about 14% above its 40-week moving average. That was its greatest disparity vs this longer-term moving average since early 2011. Additionally, the index was then 5.7% above its February peak. Of note, since late 2018, the SPX has only managed to extend, on average, about 4.4% above a prior top before running into trouble. Also, at its high tick, the SPX was just 3 points above a weekly log-scale resistance line from its late-2018 high, which is residing at around 3,585 this week. The rejection from this line may be signaling a significant high is in place. Weekly momentum is another issue. The RSI is turning down after stalling well shy of its high earlier in the year. Of note, multi-week declines of varying degrees, from late 2018 to early 2020, were preceded by weekly momentum divergence. The S&P 500 saw some recovery early Friday, but gains have since faded. Unless the index can, ultimately, overwhelm its 3,588.11 high, a significant trend change may be at hand. This, especially, given recent bearish signs from volatility urn:newsml:reuters.com:*:nL1N2G019P urn:newsml:reuters.com:*:nL1N2FY0GQ, sentiment urn:newsml:reuters.com:*:nL1N2FY0Y5, momentum urn:newsml:reuters.com:*:nL1N2G00BN, and market internals. urn:newsml:reuters.com:*:nL1N2FX0KT urn:newsml:reuters.com:*:nL1N2FU0R6 urn:newsml:reuters.com:*:nL1N2FT1PI urn:newsml:reuters.com:*:nL1N2FN0LZ (Terence Gabriel) ***** AFTER TECH WRECK, FUTURES POINT TO MIXED OPEN (0853 EDT/1253 GMT) U.S. equity index futures are pointing to a mixed open, although, in the wake of the release of jobs data, they gained some ground from where they were before the report. .N Dow 1YMcv1 and Russell 2000 RTYcv1 futures are rising, while S&P e-minis EScv1 are slightly higher. Nasdaq 100 futures NQcv1 , however, are quoted down around 0.6% but pared losses from before the report. This after stocks, on Thursday suffered their worst day in months, and the tech sector collapsed nearly 6%. The Technology Select Sector SPDR Fund XLK.P is quoted down modestly in premarket trade. August Non-Farm Payroll's headline jobs number came in roughly in-line with the estimate. However, new private and manufacturing jobs were shy of the Reuters poll numbers. The unemployment rate came in lower than expected, and earnings data was hotter than expected: Russell Price, Chief Economist at Ameriprise Financial Services in Troy Michigan commented, "The market was underwhelmed because when you had a significant drop yesterday you'd look for a somewhat of a rebound today. Futures are falling a little" "Investors are primarily considering that the surge in virus cases slowed down the recovery and we still have virus concerns coming into the fall which may result in the jobs recovery to be slower than previously expected.” In any event, after dropping 5 straight days, the U.S. 10-Year Treasury yield US10YT=RR , at about 0.66%, is higher. Now, it remains to be seen if stocks can stabilize into today's close, ahead of the long holiday weekend. Here is your premarket snapshot: (Terence Gabriel, Sinéad Carew) ***** <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ NFP09042020TG https://tmsnrt.rs/3h31ips premarket09042020 https://tmsnrt.rs/3gWP5Tm SPX09042020 https://tmsnrt.rs/31ZI4N2 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Terence Gabriel is a Reuters market analyst. The views expressed are his own) ((terence.gabriel.tr.com@reuters.net terence.gabriel@tr.com 646-223-4122))
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