Check out the companies making headlines before the bell:
Philip Morris, Altria – The tobacco companies announced they have ended their merger talks.
Best Buy – In an investor presentation, the electronics retailer set a fiscal 2025 enterprise revenue target of $50 billion, compared to fiscal 2020 guidance of $43.1 billion to $43.6 billion. Best Buy also plans an additional $1 billion in cost reductions and efficiencies by fiscal 2025.
KB Home, Lennar, Toll Brothers – Raymond James upgraded the three homebuilder stocks to "outperform" from "market perform," anticipating that upcoming earnings reports will show decidedly improved housing market fundamentals.
VF Corp. – The maker of North Face and other apparel brands said it expects compounded annual earnings growth of 12% to 14% over the next five years, with $10 billion being returned to shareholders over that time.
Nike – Nike reported quarterly profit of 86 cents per share, 16 cents a share above estimates. Revenue also topped Wall Street forecasts. The athletic footwear and apparel maker's results were boosted by a significant jump in online sales, among other factors.
Alibaba – Alibaba unveiled a new artificial intelligence chip that the China-based online retailer said would be used to enhance services for its cloud computing unit.
Amazon.com – Amazon bought technology startup INLT for an undisclosed amount, according to Reuters. INLT makes software that helps companies simplify the process of importing goods into the United States.
McDonald's – McDonald's is using Amazon's Alexa and Alphabet's Google Assistant to help it hire new workers. The restaurant chain is allowing interested applicants to apply through voice-activated software by answering questions posed by those digital assistants.
AT&T – AT&T Chief Operating Officer John Stankey told The Wall Street Journal that the DirecTV satellite TV unit is an important part of the company's strategy and that it doesn't plan to sell it. The Journal had reported last week that a sale or spin-off of DirecTV was under consideration.
HD Supply – HD Supply plans to split into two separate public companies. One will contain the facilities maintenance business and the other will focus on commercial and industrial operations.
Cintas – Cintas reported fiscal first-quarter profit of $2.32, beating the consensus estimate of $2.15 a share. Revenue also beat analysts' forecasts, with the provider of uniforms and other employee services also raising its full-year earnings forecast.
Broadcom – Broadcom raised $3.2 billion in a convertible preferred stock offering, with the chipmaker upsizing the offering from the previously planned $3 billion.