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McDonald's, Yum! face new China food scandal; Hasbro mixed results; Reynolds American tumbles on verdict

Hot Stock Minute

Here is a look at some of the stocks the Yahoo Finance team will be watching for you today.

Hasbro (HAS) shares fell in the pre-market. The toy maker reported earnings of $0.36 a share, right in line with analysts' estimates, thanks in part to strong sales of My Little Pony and Transformer toys. However, revenue fell short of estimates, coming in at $829.3 million, that's up 8% from year earlier. This comes after Mattel (MAT) reported disappointing earnings last week, as the toy industry struggles to capture children's attention in the digital age.

GoPro (GPRO) shares were up in early trading. JPMorgan (JPM) initiated coverage on the stock with an overweight rating and a price target of $51 a share. The financial firm said it sees further upside in shares of GoPro, which will be driven by first-time adoption of the company's cameras in various categories over the next five years. JPMorgan was among at least five firms to initiate coverage of GoPro, including Citigroup (C), Piper Jaffray, Stifel and Barclays (BCS).

EMC (EMC) shares rose in the pre-market after The Wall Street Journal reported that activist investor Elliott Management plans to push the data-storage giant to separate its VMware (VMW) unit in order to boost its stock price. EMC still owns a majority stake in the company. The hedge fund has taken a more than a $1 billion stake in EMC, which will make it the fifth largest shareholder.

Yum! Brands (YUM) and McDonald’s (MCD) shares fell  before the bell. The two fast-food giants are facing a new food safety scandal in China. Yum and McDonald's suspended meat purchases in China from a Shanghai-based unit of U.S.-owned OSI Group, after it was revealed that it's under investigation in the country for allegedly selling expired chicken and beef. This comes as the two companies were just starting to recover from a 2012 food safety scandal. China is one of the biggest markets for Yum and McDonald's.

Tobacco stocks, including Altria Group (MO) and Reynolds American (RAI) fell in early trading after a jury imposed punitive damages of $23.6 billion against that company's R.J. Reynolds Tobacco unit on Friday. The Florida jury awarded the sum to a widow whose husband was a chain smoker and died of lung cancer in 1996 at the age of 36. R.J. Reynolds said it will appeal the decision. The verdict came the same week that Reynolds American agreed to buy Lorillard in a $27.4 billion deal.