What's moving markets today
Domino's (DPZ) flashy stunts don't seem to be working.
The pizza company's quarterly results broadly missed Wall Street's expectations, sending shares of the company down about 7% before the market opened Thursday.
US same-store sales popped 3.6% at company-owned stores and 5.7% at franchises in the last three months of 2018.
But Wall Street analysts expected better performance on both counts. They were looking on average for 6.6% growth in company-owned stores and a 7.25% spike for franchises, according to IBES data from Refinitiv.
Domino's net income came in at $111.6 million for the quarter, about 19.6%more than the same period the previous year. The company's earnings per share also fell short of expectations.
Competition among Domino's, Pizza Hut and Papa John's is fierce, and the earnings results may signal that Domino's is struggling to stay competitive.
Last month, Domino's introduced a promotion which rewards customers for buying pizza, even from a competitor, in an attempt to show off its digital capabilities and get new customers to try its food.
The "points for pies" program is an "example of how we do things a bit differently," said CEO Richard Allison during a call with analysts on Thursday. He added that the program has been a good way to make news and raise customer engagement with the brand.
Meanwhile, Pizza Hut announced plans to expand its beer delivery program and Papa John's launched a new tuition reimbursement program for employees that could help brighten its tarnished reputation.
Correction: An earlier version of this article incorrectly stated when Domino's launched the "points for pies" program.
Shares fell more than 1% in early trading.
"The Company is cooperating with these government inquiries and will be producing documents in response," the conglomerate said in the filing.
A pair of Nike (NKE) shoes were in the national spotlight last night — all for the wrong reasons.
Duke freshman athlete Zion Williamson was injured after his Nike shoe tore apart less than a minute into a basketball game. Shares of the company are declining more than 1% following the incident that went viral.
Nike said in a statement it was "obviously concerned." It continued:
The quality and performance of our products are of utmost importance. While this is an isolated occurrence, we are working to identify the issue."
Some stocks we're watching this morning:
- Barclays (BCS) jumped 3.6% after the UK bank reported earnings that matched analyst expectations and highlighted a strong performance from its trading business.
- Lenovo (LNVGF) spiked nearly 12% in Hong Kong after the Chinese tech company beat earnings expectations. Its smartphone business turned a profit for the first time since it acquired Motorola's mobile phone division five years ago.
- Shares in shipping giant Maersk (AMKAF) dropped nearly 10% after the company warned that its 2019 earnings wouldn't meet expectations. Investors have been watching to see how the Danish company would be affected by the global economic slowdown, Brexit and the trade war between the US and China.
US stock futures are pointing higher ahead of more trade talks between the US and China.
Top negotiators from the two countries are set to meet on Thursday in Washington, where they'll try to close gaps on issues including China's currency and market access for US companies.
President Trump has indicated that he is prepared to extend his self-imposed deadline if an agreement is close. If he doesn't, tariffs on $250 billion worth of Chinese goods will go from 10% to 25% on March 2.