Early movers: SBUX, LULU, X, JNJ, NFLX, YUM & more
Check out which companies are making headlines before the bell on Wednesday:
Starbucks – The coffee chain has revised its fourth quarter results to show a loss, taking a $1.71 billion after-tax charge following Tuesday's court ruling that awarded Kraft nearly $2.8 billion dollars. The case stemmed from Starbucks ending its packaged coffee partnership with Kraft in March 2011. The money will go to Mondelez International, whose grocery business was spun off last year, taking the Kraft name with it.
Lululemon – The athletic apparel maker's shares were rated "overweight" in new coverage at JPMorgan Chase. The firm said Lululemon will see top and bottom line growth accelerate, following this year's execution issues.
Perry Ellis – The clothing designer has cut earnings and revenue expectations for its third quarter and full year, due to reductions in its private label business as well as reduced sales in its direct retail channel.
U.S. Steel – Morgan Stanley upgraded the steel maker's stock to "overweight" from "equalweight", saying the company is in a position to improve its profit margins by cutting costs, as the supply/demand environment improves.
Qualcomm – Goldman Sachs added the chipmaker's shares to its "conviction buy" list, following a period in which Qualcomm's shares have lagged the market. Goldman said expanding margins should allow Qualcomm to accelerate its earnings growth.
Sotheby's – Trian's Nelson Peltz has sold his 3 percent stake in the auction house, according to the New York Post.
Potbelly – The newly public restaurant chain reported third quarter profit of 15 cents per share, excluding certain items, beating estimates by six cents. Revenue was in line with Street estimates, and same-store sales at company-owned restaurants rose 2.5 percent, above the StreetAccount estimate of 1.3 percent.
MBIA – MBIA reported third quarter profit of 67 cents per share, compared to expectations of a quarterly loss, and the bond insurer's revenue also exceeded estimate. The gains came primarily from derivatives, while net written premiums declined.
Yum Brands– The parent of KFC, Taco Bell, and Pizza Hut reported same-store sales in the key China market fell five percent in October, a smaller drop than analysts had expected.
Office Depot– The office supplies retailer has named Roland Smith as its chairman and chief executive officer, effective immediately. Smith is known as a turnaround expert, and his appointment comes a week after Office Depot completed its deal to acquire rival OfficeMax.
Johnson & Johnson – J&J has reportedly reached a more than $4 billion settlement of lawsuits involving defective hip implants, according to Bloomberg. Johnson & Johnson declined to comment on the report when reached by CNBC.
Extended Stay America (STAY) – The hotel chain will begin trading today on the New York Stock Exchange, after its initial public offering was priced at $20 per share, the midpoint of its expected range.
Red Hat– Piper Jaffray upgraded the Linux software distributor's stock to "overweight" from "neutral".
—By CNBC's Peter Schacknow
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