Check out the companies making headlines before the bell:
Costco – Costco reported adjusted quarterly profit of $1.61 per share, one cent shy of estimates, although revenue did beat forecasts. Costco’s same-store sales were higher by 8.8 percent during the quarter, matching forecasts.
Adobe Systems – Adobe earned an adjusted $1.90 per share for its latest quarter, beating estimates by two cents, while the software maker’s revenue was slightly above Street forecasts. The maker of popular software like Photoshop and Acrobat also raised its revenue forecast for the full year.
Starbucks – Starbucks shares are under pressure after its announcement that same-store sales growth would remain steady at between three to four percent annually over the long term, even as it expands delivery options and nearly doubles stores in China.
Belmond – Belmond agreed to be bought by French luxury goods maker LVMH for $3.2 billion including assumed debt, or $25 per share for the Bermuda-based luxury hotel operator.
Regeneron Pharmaceuticals – The stock was upgraded to “buy” from “neutral” and added to the “Conviction Buy” list at Goldman Sachs. Goldman said the drug maker has a robust product pipeline, and that any negatives involving the long term market for its eye drug Eylea are already priced in.
Apple – Apple will push software updates to users in China, in a bid to avoid the impact of a court ban on some of its iPhone models in that country. That ban stemmed from alleged infringement of patents held by chipmaker Qualcomm.
Ford, General Motors – Ford and General Motors were rated “buy” in new coverage at Deutsche Bank, which said industry headwinds have prompted deep restructuring and could prompt further collaboration and even consolidation.
Tesla – Tesla was rated “outperform” in new coverage at Wedbush, which said the automaker has revolutionized consumer buying habits and has an impressive product roadmap. Separately, Tesla announced a price cut for its Model S and Model 3 cars in China, after Beijing suspended additional tariffs on US-made cars.
Cisco Systems – The networking equipment maker was downgraded to “buy” from “neutral” at Nomura/Instinet, which thinks IT spending strength may diminish in 2019.
Procter & Gamble – The consumer products giant’s stock was upgraded for a second straight day, this time by Morgan Stanley. The firm said P&G’s gross margins are improving, and revenue and earnings are growing faster than those of its peers.
Facebook – Facebook is planning a further push into video, with Recode reporting that it would like to sell consumers subscriptions to cable TV networks like HBO.
Walgreens Boots Alliance – Goldman Sachs downgraded the stock to “sell” from “neutral”, saying challenges in the retail pharmacy business have intensified and that other initiatives will not produce enough revenue to offset a declining core business.