Check out the companies making headlines before the bell:

Tesla — The automaker rose more than 1 percent after Macquarie initiated coverage of the stock with an "outperform" rating and a price target of $430 a share. "We view Tesla as a disruptive technology growth company with differentiated products and strong brand presence," Macquarie said.

Papa John's — The Wall Street Journal reported Trian Partners is considering Papa John's as a takeover target. Shares of the pizza chain soared 9.1 percent on the report.

Microsoft — Microsoft said it is investing in Grab, a ride-hailing service based in Singapore. Separately, its LinkedIn subsidiary announced it was acquiring Glint, a start-up that helps human resources department figure out how workers feel about their employers.

Walmart — The retail giant's stock was upgraded to "buy" from "hold" at Deutsche Bank as its online grocery business grows. "We believe the company is now in position to accelerate market share gains in grocery," Deutsche said.

Alphabet — Alphabet's Google unit said it did not disclose a security bug but that it gave third-party developers access to Google+ users' private data because it feared regulation, according to a report.

Adidas — The sports apparel maker agreed to a deal worth $391 million to produce English soccer team Arsenal's uniforms. The team will start wearing Adidas gear in July 2019.

J.P. Morgan Chase — Institutional Investor ranked J.P. Morgan's equity research team as the best on Wall Street for a third straight year.

Affimed — Affimed shares plunged more than 20 percent after the company suspended trials on a cancer drug following the death of a patient. The company also said two other patients suffered "life-threatening events."