Hot Stocks: SBUX CEO transition; JBL, SCVL rise on earnings; SMAR drops
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The Federal Reserve will demand most of Wall Street's attention on Wednesday. Still, even with interest rates in focus, some individual stock stories still generated action in pre-market trading.
Starbucks (NASDAQ:SBUX) managed to grab some of the spotlight, gaining ground on news that its founder is returning as interim CEO. The stock also received an analyst upgrade.
Elsewhere, Jabil (JBL) and Shoe Carnival (SCVL) both showed strength in pre-market action, thanks to their respective quarterly reports.
Earnings news had the opposite impact on Smartsheet (SMAR), which lost ground after its quarterly update included a weak forecast for the current fiscal year.
Gainers
Starbucks (SBUX) gained ground in pre-market trading after announcing a leadership transition. The chain of coffee shops revealed that 61-year-old Kevin Johnson, its president and CEO, will retire next month. Company founder and former CEO Howard Schultz will take over the chief executive role on an interim basis.
In other news, JPMorgan raised its rating on SBUX, citing the company's potential in China. The firm upgraded SBUX to Overweight from Neutral. A busy morning for SBUX also included the announcement that the company would phase out disposable cups. 
Amid the leadership shakeup and the upgrade, SBUX rallied about 5% in pre-market action.
Jabil (JBL) also showed strength before the opening bell, boosted by strong earnings news. The firm's quarterly profit beat expectations, with revenue climbing nearly 11% from last year.
Looking ahead, the manufacturing services company projected revenue for the current quarter of $7.9B-$8.5B. Analysts were looking for a figure of $7.69B. Based on the results and outlook, JBL advanced more than 4% in pre-market trading.
Earnings news also sparked buying in Shoe Carnival (SCVL). The retailer exceeded expectations on both its top and bottom lines, with revenue that advanced 23% from last year. The stock jumped 8% before the opening bell.
Decliner
Smartsheet (SMAR) dropped almost 6% in pre-market trading following the release of quarterly results. Disappointing guidance included with its latest financial figures sent the stock lower.
For Q4, the work management software provider beat expectations with its Q4 results. However, the firm predicted a loss for the current fiscal year that was substantially wider than what analysts were predicting. The company also projected negative cash flow for the year.

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