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Early movers: SHLD, DIS, VRX, LL, FOSL, LMT, LB & more

Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
Traders work on the floor of the New York Stock Exchange.

Check out which companies are making headlines before the bell:

Sears Holdings – Sears lost an adjusted 67 cents per share for its latest quarter, smaller than the loss of $2.50 estimated by the lone analyst providing an estimate. Profit margins improved at both the Sears and Kmart chains, but same-store sales declined.

Walt Disney – Bernstein downgraded Disney to "market perform" from "outperform," saying valuations for media stocks need to be adjusted because of an increased risk premium regarding affiliate fees.

Valeant Pharmaceuticals – Valeant is buying privately held Sprout Pharmaceuticals for $1 billion. Earlier this week, Sprout saw its female libido drug gain FDA approval.

Lumber Liquidators – Cantor Fitzgerald upgraded the stock to "buy" from "hold," saying the flooring maker's risk/reward profile is much more favorable now following a nearly 80 percent year-to-date slide. Cantor said its prior profit margin outlook is too conservative, based on recent meetings with management.

The Container Store – BB&T upgraded the home goods retailer to "hold" from "underweight," saying the stock has underperformed while sales trends have improved.

Fossil – The watch maker's shares were upgraded to "sector weight" from "underweight" at KeyBanc, which feels a slowdown in the watch market and any impact from the introduction of the Apple Watch has played out.

Lockheed Martin – Sterne Agee CRT upgraded the defense contractor's shares to "buy" from "neutral," citing the positive effects of its Sikorsky acquisition, the likely sale of its IT and services portfolio, and other changes in its products and services mix.

Mattel – Oppenheimer initiated coverage on the toy maker's stock with an "outperform" rating, saying negatives surrounding Mattel are already well known and priced into the stock, and that improvements in operating performance could portend future growth in revenue and profits.

L Brands - The Victoria's Secret parent matched estimates with earnings of 68 cents per share. The apparel retailer's current quarter guidance is also below estimates, but L Brands also raised its earnings outlook for the full year.

NetApp – NetApp beat estimates by 6 cents with adjusted quarterly profit of 29 cents per share, with revenue slightly above forecasts. The data storage equipment maker was helped by improving results from its cloud-based products business.

Popeyes Louisiana Kitchen - Popeyes matched estimates with adjusted quarterly profit of 44 cents per share, though revenue was below Street projections. The restaurant chain did raise its forecast for the full year, as it now expects comparable restaurant sales to increase 4.5 percent to 5.5 percent, from the prior 3.5 percent to 4.5 percent.

Bank of New York Mellon - The bank was sued by the FDIC over mortgage-backed securities that were bought by now-failed Guaranty Bank of Texas, which closed in August 2009. BNY was accused of "shirking its duty."

Petrobras – Petrobras denied reports that it was in talks with U.S. authorities to settle criminal and civil investigations. The Brazilian oil firm made the denial in a U.S. Securities and Exchange Commission filing.

Boston Scientific – The medical device maker received approval to market its stent for peripheral artery disease in the United States. The device, which had been approved in Europe in 2011, was recalled by the company that year because of partial deployments of the stent that could result in injury.

Depomed – The drug maker has rejected a buyout bid from Horizon Pharma for a third time, saying Horizon's bid "significantly undervalues" the company.

Regal Entertainment – The movie theater chain will inspect bags and backpacks of moviegoers as part of the admission process into its theaters, in a move aimed at improving safety.



By CNBC's Peter Schacknow

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