Check out which companies are making headlines before the bell:
Netflix–Morgan Stanley downgraded the stock to "underweight" from"equalweight", due to increasing competition from players like Hulu, HBO GO, and Amazon Prime Instant Video.
UnitedHealth, Humana–Deutsche Bank upgraded UnitedHealth to "buy" from "hold", while cutting Humana to "sell" from "hold". The firm said the margin risk profile of UnitedHealth's health benefits business is improving relative to its peers, while saying Humana's above-average risks are under appreciated by investors.
Michael Kors–Citi downgraded the luxury goods maker to "neutral" from "buy", citing valuation. It does say it still sees comps exceeding guidance.
YUM Brands–RBC upgraded the restaurant operator's stock to "Top Pick" from "outperform", saying it see YUM's China sales rebounding. It expects those sales to accelerate to a double-digit annual growth rate during the second half of this year.
Johnson & Johnson–RBC upgraded J&J to "outperform" from "sector perform", saying the company's pharmaceutical business should continue to deliver above average revenue growth.
Lululemon—D.A. Davidson raised its rating on the athletic apparel maker to "buy", saying it remains the leader in an attractive category and that consumer interest in the brand is high.
Apple—Rival Samsung announced a new 12-inch tablet at the Consumer Electronics Show in Las Vegas. Apple's new iPad Air has a 9.7-inch screen, though there have been rumors of a new iPad later this year.
Sonic–The restaurant chain reported first quarter profit of 13 cents per share, excluding certain items, in line with estimates. However, revenue and comparable store sales were slightly below Street forecasts.
Toyota–The auto maker will sell a hydrogen-powered car in the U.S. in 2015, a year earlier than originally planned.
JPMorgan Chase–Bank officials won't be penalized as part of the $2 billion settlement being negotiated with federal officials, according to sources.The case involves allegations that the bank ignored warning signs of Bernard Madoff's Ponzi scheme.
Boeing–Some of Boeing's machinists plan to contest the vote that approved a contract by a narrow margin last week. Union leaders, however, say no formal request for a recount or a revote has been received.
, –Along with , Sony and Microsoft will be able to sell their popular video game consoles in China, after the country temporarily lifted a 14-year old ban on the sale of consoles made by foreign firms.
–Bank of America/Merrill Lynch upgraded the defense contractor's stock to "buy" from "neutral".
–Goldman Sachs cut its rating on the toy maker to "sell" from "neutral".
—By CNBC's Peter Schacknow
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