Check out the companies making headlines before the bell:
Cannabis stocks – Shares of marijuana producers are extending a Thursday rally in the premarket, following an industry publication's report that the House will vote for a second time next week to legalize cannabis at the federal level. The House passed such a bill in 2020, but the Senate did not follow suit. Tilray (TLRY) surged 14.1% in the premarket, Aurora Cannabis (ACB) jumped 10.2%, Sundial Growers (SNDL) soared 12% and Canopy Growth (CGC) rallied 9.6%.
Bed Bath & Beyond (BBBY) – Bed Bath & Beyond is close to reaching a settlement with investor Ryan Cohen, according to people familiar with the matter who spoke to Bloomberg. The agreement would see three new directors appointed to the housewares and personal care products retailer's board. Cohen's RC Ventures holds a 9.8% stake in Bed Bath & Beyond. The stock added 1.4% in premarket trading.
Nio (NIO) – Nio shares fell 3.6% in premarket action after the China-based electric car maker reported better-than-expected quarterly sales but saw deliveries fall below analyst estimates.
Honest Company (HNST) – Honest Company posted a wider-than-expected quarterly loss as sales of masks and sanitizing products dropped significantly. It also issued guidance for the current quarter that was weaker than expected. Shares slumped 19.5% in the premarket.
Shaw Communications (SJR) – Shaw's shares added 2% in premarket trading after Canadian regulators gave conditional approval to a $16 billion takeover of Shaw's broadcasting services by Canadian telecom giant Rogers Communications (RCI).
U.S-listed China stocks – These stocks continue to be volatile amid concerns about tighter regulation by Chinese authorities and potential U.S. delistings. Alibaba (BABA) lost 3.4% in premarket action, with JD.com (JD) losing 4.2%, Pinduoduo (PDD) sliding 6% and Didi Global (DIDI) falling 7.1%.
Teva Pharmaceutical (TEVA) – Bernstein upgraded the generic drug maker's stock to "outperform" from "market perform," noting an improved balance sheet, new product launches and the potential of settling opioid litigation. Teva rallied 4.2% in the premarket.
Switch (SWCH) – The technology infrastructure company was downgraded to "equal weight" from "overweight" at Wells Fargo Securities, which said a buyout of Switch is possible but the price would likely be no higher than $32 to $34 per share. Switch closed at $30.24 Thursday and dropped 2.2% in premarket trading.
Fortinet (FTNT) – The cybersecurity company's shares fell 2.1% in the premarket after Bank of America Securities downgraded Fortinet to "neutral" from "buy," saying strong results are already reflected in the stock's price.