Market Highlights: Domino’s Pizza Surges, Viking Therapeutics Enters Weight-loss Arena, and Macy’s Implements Store Closure Strategy

Domino’s Pizza (DPZ): Domino’s reported impressive fourth-quarter profits, attributing its success to robust delivery and carryout sales. CEO Russell Weiner highlighted improved service times and a growing membership in its rewards program, Domino’s Rewards, as key drivers. Additionally, a promotional “emergency pizza” offer further boosted orders and program sign-ups. The company announced a 25% increase in its quarterly dividend and expanded its stock repurchase program by $1 billion, leading to a 5.8% gain in its shares.

Viking Therapeutics (VKTX): Viking Therapeutics announced promising results from a Phase II study of its obesity medication, demonstrating weight loss of up to 14.7% in patients after 13 weeks of treatment. The drug showed potential superiority over similar medications from Eli Lilly and Novo Nordisk. However, further validation in a larger Phase III study is necessary before market entry. The news propelled Viking shares to surge by 121%.

Macy’s (M): Amid plans to revamp its operations, Macy’s announced the closure of approximately 150 underperforming stores over the next three years, representing about 30% of its fleet. Despite this restructuring effort, the company reported earnings beat in its quarterly results. Macy’s aims to focus on upgrading its remaining stores while expanding smaller-format locations. Shares of Macy’s rose by 3.4% following the announcement.

Zoom Video Communications (ZM): Zoom provided a bullish outlook, forecasting higher-than-expected adjusted profit for the year and unveiling plans for a $1.5 billion stock buyback. The company attributed its strong quarterly performance to increased sales of artificial-intelligence services. Despite sluggish performance post-pandemic, Zoom remains optimistic about growth prospects in 2024, projecting $4.6 billion in revenue. As a result, Zoom shares soared by 8%.

UnitedHealth (UNH): The Justice Department initiated an anticompetitive investigation into UnitedHealth, probing its dominance in various healthcare sectors. Despite UnitedHealth’s assertions of fair competition among its units, the investigation has led to a 2.9% decline in its shares as regulatory scrutiny intensifies.

Spirit AeroSystems (SPR): Reports emerged of talks between Boeing and Spirit AeroSystems regarding a potential acquisition. Spirit, a supplier of 737 MAX fuselages, has faced scrutiny over manufacturing issues and its involvement in recent incidents. Amidst restructuring efforts, including leadership changes and exploration of divestitures, Spirit shares surged by 15% on news of the potential acquisition talks.