Some U.S. stocks to watch on June 16

NEW YORK, June 16 (Reuters) - Some U.S. stocks to watch on Tuesday:

BEST BUY CO INC (BBY.N)

The company reported first-quarter earnings that beat expectations but a drop in its U.S. same-store sales. [ID:nN16210900]

Shares sank 4.2 percent to $37.05 in premarket trading.

AT&T INC (T.N)

VERIZON COMMUNICATIONS (VZ.N)

Barclays downgraded the telecom sector to neutral from positive, moving AT&T to equal weight from overweight and dropping its target on Verizon to $34 from $37.

Shares of AT&T fell 1.3 percent to $24.30 in premarket trading while Verizon closed Monday at $29.73. Both companies are Dow components. [ID:nBNG483484].

MICROSOFT CORP (MSFT.O)

Jefferies & Co on Tuesday raised its price target on the software company to $26 from $22, recommending investors buy the stock "in front of what is likely to be a large, rapid PC upgrade cycle starting in late 2010."

Shares of Microsoft, a Dow component, rose 0.3 percent to $23.50 in premarket trading.

CITIGROUP INC (C.N)

Nomura and T&D Holdings are among the firms in the second round of bidding for Citi's Japanese asset management unit, in a deal that is likely to top $1 billion, according to sources familiar with the matter. [ID:nBNG455012]

Shares of Citigroup rose 3 cents to $3.40 in premarket trading.

NORTHROP GRUMMAN CORP (NOC.N)

The company said a contract to build the first two production models of the U.S. Navy's new twin-engine E-2D Advanced Hawkeye command and control aircraft was worth $432 million. [ID:nN16251760]