Check out the companies making headlines before the bell:
Kellogg (K) – Kellogg jumped 8.1% in premarket trading after announcing plans to split into three separate public companies. One entity will comprise the snack and international cereal businesses, another the U.S. cereal business and the third will be a pure-play plant-based food producer.
Lennar (LEN) – The home builder reported an adjusted quarterly profit of $4.69 per share, beating the $3.96 consensus estimate, with revenue that also topped forecasts. However, the company said it began to see the impact of higher interest rates and rapidly appreciating home prices toward the end of the quarter.
Spirit Airlines (SAVE) – Spirit rallied 8.1% in premarket trading after JetBlue (JBLU) increased its takeover offer for Spirit by $2 to $33.50 per share. Spirit plans to decide by the end of the month whether to stick with its deal to merge with Frontier Group (ULCC) or to accept JetBlue’s bid. JetBlue rose 1.6%.
Mondelez (MDLZ) – Mondelez is buying energy bar maker Clif Bar & Co. for $2.9 billion with additional payouts possible depending on financial results. The transaction is expected to close during the third quarter.
Valneva (VALN) – Valneva shares soared 81.8% in the premarket after Pfizer (PFE) agreed to buy an 8.1% stake in the French vaccine maker for more than $95 million. Pfizer and Valneva are already joint venture partners in developing treatments for Lyme disease.
Tesla (TSLA) – Tesla added 3.2% in premarket action after CEO Elon Musk gave more details on the planned job cuts announced earlier this month. Musk told Bloomberg the company would cut salaried staff by about 10% over the next three months, resulting in an overall reduction of about 3.5%.
Twitter (TWTR) – In the same Bloomberg interview, Musk said there are still some unresolved matters regarding his deal to buy Twitter, including information about spam accounts and finalizing the deal’s financing. Meanwhile, a new SEC filing from Twitter recommends shareholders vote in favor of Musk’s $54.20-per-share takeover bid. Twitter added 1.2% in the premarket.
Exxon Mobil (XOM) – Exxon Mobil was upgraded to “outperform” from “neutral” at Credit Suisse, which pointed to Exxon’s investments in attractive oil and gas projects. Exxon Mobil added 2.6% in premarket action.
Sunrun (RUN) – The solar power company’s stock rose 2.5% in premarket trading after Goldman said Sunrun remained the best way to invest in residential solar growth. Goldman rates Sunrun “buy” while it downgraded rival SunPower (SPWR) to “sell” from “neutral.” SunPower slid 2.7%.
Charles Schwab (SCHW) – The brokerage firm was upgraded to “buy” from “neutral” at UBS, which called Schwab a quality name well insulated from credit and market risk. Schwab jumped 3.3% in premarket trading.