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Early movers: AAL, URBN, NKE, FDX, SHLD, WGO, SNAP & more

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Check out which companies are making headlines before the bell:

American Airlines Group – Morgan Stanley downgraded the airline's stock to "equal-weight" from "overweight", in a report that downgraded the industry as a whole to "in-line." Morgan Stanley is concerned about increases in capacity, with American being especially aggressive at the same time its margins are below average.

Urban Outfitters – KeyBanc upgraded the apparel retailer to "overweight" from "sector weight," citing the company's well-positioned and differentiated stores, as well as a reasonable number of total stores.

Nike – Nike reported quarterly profit of 68 cents per share, 15 cents a share above estimates. The athletic footwear and apparel maker's revenue was slightly below forecasts, however, hit by competition and a strong dollar. The company also gave a weaker-than-expected reading of future orders.

FedEx – FedEx missed estimates by 27 cents a share, reporting adjusted quarterly profit of $2.35 per share. Revenue was essentially in line with expectations. The delivery company said it handled fewer packages than expected from its largest retail customers during the holiday season, after increasing resources in anticipation of a holiday surge. Investors were encouraged, however, by optimistic comments about the company's profit margins.

Sears Holdings — Sears issued a warning about its ability to continue as a going concern. The retailer's annual report said "substantial doubts exist" about its future after losing money year after year and seeing sales decline.

Winnebago Industries – The recreational vehicle maker beat estimates by three cents a share, with quarterly profit of 48 cents per share. Revenue was well above forecasts. The company credits a more balanced portfolio and greater scale, among other factors.

Perry Ellis – The apparel maker fell a penny shy a share of Street forecasts, with quarterly profit of 59 cents per share. Revenue fell well short of estimates. The company is also forecasting a full-year profit range of $2.07 to $2.17 per share, mostly below the consensus estimate of $2.16 a share. Perry Ellis noted that many customers cut back shipments due to a challenging retail environment.

Novartis – The drugmaker said its experimental heart failure drug Serelaxin failed to produce the desired results in a late-stage trial.

PPG Industries – PPG saw its second unsolicited bid for rival paint producer AkzoNobel rejected by the Dutch company. AkzoNobel issued a statement saying the new bid undervalues the company and does not address risks for shareholders. Major shareholder Elliott Management said AkzoNobel was right to reject the latest offer but wants the company to engage with PPG about revising the bid.

Snap – Snap was rated "buy" in new coverage at Drexel Hamilton, which praised the Snapchat parent's view of itself as a camera company and that its platform is so ingrained with millennials that competitors will have a difficult time matching it.

Avon Products – The household products maker is undergoing a revamp of its North American business, led by Cerberus, which took over control of the North American operations last year. Cerberus executive Steven Mayer told The Wall Street Journal this will include the elimination of some products that have been sold by Avon for decades.

Bebe Stores –The fashion retailer plans to close all its brick and mortar stores and concentrate on online sales, according to a Bloomberg report.

Duluth Holdings – The Duluth Trading parent reported quarterly profit of 43 cents per share, beating estimates by nine cents a share. The casual wear maker's revenue also beat forecasts, with the company saying it was able to overcome the effects of unseasonably warm weather in early December.

(Disclosure: CNBC parent NBCUniversal is an investor in Snap.)