Stocks in the news: Time Warner, Kraft, Walt Disney, Ambac

Time Warner (TWX), parent of DailyFinance, reported a 38 percent drop in third-quarter profit Wednesday, hurt by declines at its AOL and publishing segments, but the results beat expectations and the company is boosting its full-year earnings forecast. Shares climbed over 2 percent ahead of the bell.

Kraft (KFT) reported disappointing results late Tuesday. This will make its task of winning over Cadbury (CBY) shareholders that much tougher as analysts cut estimates of what it could afford to pay for Cadbury. KFT shares declined 1.6 percent in premarket trade.