5 Things to Know Before the Stock Market Opens

U.S. stock futures are pointing higher as investors look for a market recovery following last week’s declines; Apple (AAPL) says it will invest $500 billion in the U.S. over the next four years; Domino’s Pizza (DPZ) shares are falling in premarket trading after disappointing domestic same-store sales; TD Cowen says Microsoft (MSFT) is canceling AI data center leases; and Chinese e-commerce firm Alibaba Group (BABA) announces it would commit $52 billion in AI and cloud computing infrastructure investments over the next three years. Here’s what investors need to know today.

1. US Stock Futures Point Higher Following Market Selloff

U.S. stock futures are pointing higher as investors look for markets to rebound after Friday’s selloff. Dow Jones Industrial Average futures are 0.7% higher after the blue-chip index posted its worst week since October. S&P 500 and Nasdaq futures are both roughly 0.5% higher. Investors are watching for earnings from Nvidia (NVDA) and January inflation data later this week. Bitcoin (BTCUSD) is down slightly to trade under $96,000. Yields on the 10-year Treasury note and gold futures are slightly higher, while oil futures are little changed.

2. Apple Commits to Investing $500B in US Over Next 4 Years

Apple (AAPL) announced plans to spend $500 billion in the U.S. over the next four years, including a new Texas factory that will produce servers that support the company’s AI platform Apple Intelligence. The iPhone maker will also double its U.S. Advanced Manufacturing Fund, including “a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC’s Fab 21 facility in Arizona,” it said. Shares of Apple are down less than 1% in premarket trading.

3. Domino’s Pizza Stock Falls After US Same-Store Sales Disappoint

Domino’s Pizza (DPZ) are falling nearly 4% in premarket trading after the company reported mixed fourth-quarter results, with better profits but lower sales than analysts expected. Domino’s reported earnings per share (EPS) of $4.89 on revenue of $1.44 billion, while analysts polled by Visible Alpha had expected EPS of $4.87 and revenue of $1.48 billion. The pizza chain said same-store sales rose just 0.4% among its U.S. locations, below the 1.5% consensus, and 2.7% internationally, better than the 1.7% growth expectation.

4. Microsoft Canceling AI Data Center Leases, Report Says

TD Cowen said Microsoft (MSFT) has begun canceling leases for AI data center capacity in the U.S., raising questions over whether the OpenAI backer is developing more AI computing power than needed over the long term, according to a Bloomberg report. The software giant has voided data center leases totaling about “a couple of hundred megawatts” of capacity, the brokerage wrote, per Bloomberg. Microsoft also plans to redirect some international spending back to the U.S. Shares of Microsoft, which has said it plans to spend $80 billion on AI infrastructure this year, are little changed in premarket trading.

5. Alibaba Says It Will Invest $52 Billion in AI, Cloud Over Next 3 Years

U.S.-listed shares of Alibaba Group (BABA) are falling 3% in premarket trading after the Chinese tech giant announced plans to invest more than $52 billion in AI and cloud infrastructure over the next three years. Alibaba said the investment “underscores the company’s focus on AI-driven growth and its role as a leading global cloud provider.” Alibaba shares soared to a three-year high after the firm reported better-than-estimated quarterly results last week and are up almost 90% over the past 12 months entering Monday.