In the early hours of Monday, stock market futures made a notable leap as Wall Street sought to bounce back from a recent slump. The Dow Jones Industrial Average futures rose by 259 points, translating to a 0.6% increase. At the same time, both S&P 500 and Nasdaq 100 futures enjoyed a boost of 0.5%.
Dow Futures Rise 300 Points in Recovery
Early Monday, stock market futures surged as Wall Street aimed to recover from a dip experienced late last week. The Dow Jones Industrial Average futures climbed by 259 points or 0.6%. Meanwhile, S&P 500 futures and Nasdaq 100 futures each saw an uptick of 0.5%.
This uptick comes in the wake of significant declines on Thursday and Friday, concluding the week in negative territory. The Dow faced a 2.51% drop, marking its steepest weekly decline since October. The S&P 500 and Nasdaq Composite weren’t spared either, falling by 1.66% and 2.51%, respectively. On Friday alone, the Dow plummeted over 700 points, with the S&P 500 and Nasdaq also down by 1.7% and 2.2%.
These downturns were prompted by February’s data, which stoked fears about the U.S. economy’s health. Key metrics showed a contraction in the services sector, and the University of Michigan’s consumer sentiment index disappointed by coming in below expectations.
Looking ahead, the upcoming week promises crucial insights into corporate performance and economic trends. Earnings reports from Home Depot and Lowe’s are set for Tuesday and Wednesday respectively, providing a glimpse into the consumer landscape. Notably, Nvidia’s earnings report on Wednesday evening could have a significant impact. This will be Nvidia’s first update since the unveiling of the DeepSeek large language model from China, which raised questions about the durability of the AI sector’s boom.
“It’s certainly on the radar for the markets this week. Investors are eager to see if the DeepSeek news poses a real threat to these companies’ profit margins going forward,” commented Lale Akoner, global market analyst at eToro. To cap off the week, Friday will bring the January update of the personal consumption expenditures index, which the Federal Reserve favors as an inflation gauge.
Summit Therapeutics Surges 5% Post-Earnings
Shares of Summit Therapeutics [NASDAQ: SMMT] are experiencing a notable surge of over 5% in pre-market trading following the release of their fourth-quarter 2024 results, which revealed a smaller-than-anticipated loss. The biopharmaceutical company reported a non-GAAP net loss of $0.07 per share, surpassing analysts’ forecasts of a $0.08 per share deficit.
Although specific revenue numbers weren’t disclosed, the firm acknowledged a substantial increase in operating expenses, soaring to $65.8 million in Q4, compared to $36.4 million during the same quarter the previous year. This uptick in spending is indicative of intensified clinical development efforts for its leading drug candidate, ivonescimab, aimed at treating non-small cell lung cancer.
Summit’s financial landscape has notably improved, with cash and short-term investments climbing to $412.3 million by the close of 2024, a significant rise from $186.2 million a year prior. This growth is largely credited to successful fundraising initiatives throughout the year.
In an exciting advancement, Summit has also revealed a collaboration with Pfizer [NYSE: PFE] for a clinical trial assessing ivonescimab in conjunction with Pfizer’s antibody-drug conjugates for solid tumor therapies. These new studies are slated to commence in mid-2025, broadening the drug’s potential uses.
With an array of Phase III trials in progress and a strategic alliance with Pfizer, Summit Therapeutics is solidifying its position as a formidable contender in the oncology drug development arena.
Owens Corning Sees Growth, Plans Expansion
Owens Corning [NYSE: OC] showcased impressive financial performance for 2024, achieving net sales of $11 billion—a 13% leap from the previous year.
A significant factor in this expansion is the recently acquired doors division, which added $1.4 billion to the revenue stream. However, net earnings saw a steep decline of 46%, landing at $647 million, largely due to ongoing strategic restructuring efforts.
On a brighter note, adjusted EBIT climbed 13% to $2.0 billion, while adjusted EBITDA surged 17% to reach $2.7 billion. Diluted earnings per share are reported at $7.37, with adjusted EPS hitting $15.91.
Free cash flow amounted to $1.2 billion, with an impressive 51%—around $638 million—returned to shareholders through dividends and stock buybacks. CEO Brian Chambers characterized 2024 as a “transformative year,” pointing to strategic moves like the acquisition of Masonite International, a comprehensive review of its global glass reinforcements sector, and the divestment of its building materials business in China and Korea.
The company also revealed ambitions to increase its laminate shingle production capacity in the southeastern U.S. by 2027. Looking forward, Owens Corning anticipates mid-20% revenue growth in Q1 2025, alongside an EBITDA margin in the low 20% range.
The company emphasizes a commitment to prudent capital allocation and ongoing investments aimed at bolstering its market presence in North America and Europe.
Domino’s Faces Challenges in Q4 Sales
Domino’s Pizza [NYSE: DPZ] unveiled its fourth-quarter earnings today, falling short of analysts’ predictions and prompting a 4% dip in premarket trading.
The beloved pizza chain reported a 2.9% revenue increase from the previous year, hitting $1.44 billion, yet it fell short of Wall Street’s expectation of $1.48 billion. Adjusted earnings per share registered at $4.89, slightly lagging behind the anticipated $4.93.
In the U.S., same-store sales ticked up by 0.4%, missing the projected growth of 1.72%. However, on the international front, the same-store sales exceeded forecasts, rising by 2.7% against an expected 1.63%.
Over the full year, the company’s revenue amounted to $4.71 billion, falling short of the $4.74 billion target, while adjusted EPS of $16.69 is just below the predicted $16.70.
Despite these tepid results, CEO Russell Weiner remains optimistic about the company’s growth strategy, citing the success of its “Hungry for MORE” value platform.
In the fourth quarter alone, Domino’s opened 364 new locations, bringing the total to 775 for 2024.
Having seen a year-to-date increase of over 12%, Domino’s stock is on investors’ radar as they seek potential momentum shifts heading into 2025.
A significant point of interest is the ongoing partnership with Uber [NYSE: UBER] for third-party deliveries, with potential expansion to DoorDash on the horizon once the exclusive deal with Uber concludes. Other initiatives, such as a revamped loyalty program and the anticipated introduction of stuffed crust pizza, are also poised to boost sales moving forward.
That’s all for today. Thank you for reading.
