Check out the companies making the biggest moves before the bell:
Activision Blizzard — The video-game maker popped 4% after Microsoft and Sony signed a deal to keep “Call of Duty” on Sony’s PlayStation gaming consoles following Microsoft’s acquisition of Activision Blizzard.
Chewy — Shares jumped more than 5% after Goldman Sachs upgraded them to buy from neutral. The firm said the e-commerce pet products company has an attractive risk-reward profile and could see margins expand.
PepsiCo — The beverage giant dropped 1.2% following a downgrade by Morgan Stanley to equal weight from overweight. Pepsi’s strong earnings report and potential upside are now priced into the stock, resulting in limited upside ahead, Morgan Stanley said.
Yelp — Shares gained 3.6% after being upgraded by Goldman Sachs to buy from neutral. The Wall Street bank also raised its price target to $47, suggesting 23.3% upside from Friday’s close. Goldman cited rising advertising trends, incremental margin opportunity and increased shareholder returns in the years ahead for the call.
Paramount Global — Shares of the entertainment company fell 2.8% in premarket trading after the latest installment in the “Mission: Impossible” franchise underperformed expectations at the box office. The movie earned $56.2 million domestically over the weekend — which was below the previous movie in the franchise — and $80 million over its first five days of release, according to Variety.
AT&T — Shares shed 1.5% following a downgrade by Citi to neutral from buy. The Wall Street firm cited the industry’s historical use of cabling sheathed in lead weighing on the company for at least a few months or potentially longer.
State Street — The financial giant slipped about 2% in premarket trading. The stock was downgraded by JPMorgan to underweight from neutral following State Street’s earnings release Friday. State Street’s second-quarter revenue missed estimates, sending shares 12.1% lower on Friday.
Figs — Shares of the apparel company fell 4.6% in premarket trading after Raymond James downgraded Figs to market perform from outperform. A slowing economy and the restart of student loan payments could hurt Figs’ growth in the near term, according to Raymond James.
— CNBC’s Jesse Pound, Hakyung Kim and Michael Bloom contributed reporting.