Check out the companies making headlines before the bell:
Home Depot — Home Depot reported first quarter profit of $2.27 per share, 9 cents a share above estimates. Revenue came in very slightly above forecasts. Global comparable-store sales were up 2.5% during the quarter, with U.S. comparable sales up 3%.
Tesla — Morgan Stanley cut its “worst case scenario” for the automaker’s shares to $10 per share from $97 a share, citing Tesla’s rising debt levels and geopolitical exposure. The firm’s price target for the stock remains at $230 a share, however, with an “equal-weight” rating.
Kohl’s — The retailer reported adjusted quarterly profit of 61 cents per share, missing consensus by 7 cents a share. Revenue was above forecasts, but comparable-store sales were down 3.4% versus estimates of a 0.2% drop. Kohl’s also cut its full-year forecast, saying the year had gotten off to a slower start than it had expected.
J.C. Penney — J.C. Penney lost an adjusted 46 cents for the first quarter, 8 cents a share more than Wall Street had anticipated. Revenue was in line with expectations, but a same-store sales drop of 5.5% was more than the 4.2% decline that analysts had predicted.
AutoZone — The auto parts retailer reported profit of $15.99 per share for its fiscal third quarter, beating the $15.14 a share consensus estimate. Revenue also came in above analysts’ forecasts, with comparable-store sales rising 3.9%.
Merck — Merck’s cancer drug Keytruda did not meet its primary goal in a study which tested the best-selling treatment as a standalone therapy for a certain type of breast cancer. It will continue to be studied for use in earlier stages of the disease and in combination with chemotherapy. Separately, Merck announced the acquisition of cancer drugmaker Peloton Therapeutics for $1.05 billion in cash plus possible milestone payments. Peloton Therapeutics had been planning an initial public offering.
DowDupont — The company said that when its split-up is completed next month, the unit that will be known as simply DuPont will announced a $2 billion share repurchase program. Dow Inc. was spun out of DowDupont earlier this year.
Legg Mason — Legg Mason appointed Trian’s Nelson Peltz and Ed Garden to its board of directors, increasing the size of the board to 12 from 10. Trian will choose a third independent director candidate for the money management firm who will be included on a slate recommended by the board in an upcoming proxy statement.
Boeing — Boeing was formally asked for compensation by China Eastern Airlines for the grounding of the carrier’s 14 737 Max jets. China Eastern has also delayed delivery of future Boeing orders.
Tata Motors — Tata shares are under pressure after the automaker gave a weaker-than-expected outlook for its Jaguar Land Rover unit, as well as forecasting weak demand in its home market of India.
American Airlines — American is suing two mechanics unions, asking the court to stop what it is calling an illegal slowdown. The airline said the slowdowns had caused 650 flight cancellations and numerous delays over the past three months.
Snap — Snap named Derek Andersen as chief financial officer and Lara Sweet as chief people officer, completing an overhaul of the Snapchat parent’s leadership team. Both of those positions had been vacant since January.
General Motors — GM is winding down its car-sharing service Maven in eight of 17 North American cities. The shutdown includes such major markets as Chicago and Boston, although the three year old service will continue to operate in cities like Los Angeles and Washington, D.C.
QEP Resources — QEP has attracted takeover interest from several parties, according to a Bloomberg report. Blackstone is among those said to be interested in the drilling company, which had said earlier this year it would explore a sale.
Ascena Retail — Ascena will shut down its Dressbarn women’s apparel division, closing all 650 stores. The parent of Ann Taylor, Loft, and other women’s apparel brands said that despite revival efforts, Dressbarn’s profitability was still short of acceptable levels.
Broadcom — Broadcom is the target of a U.S. investigation focusing on the company’s chip sales, according to a Bloomberg report.
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