Markets close at 1pm ET ahead of the Independence Day holiday on Thursday. Shares of Paramount Global (PARA) are soaring in premarket trading after reports that a merger with Skydance Media has been agreed to after months of negotiations. Investors are keeping a close eye on a range of employment and service sector data, as well as updates from the Federal Reserve. Eli Lilly (LLY) shares are modestly higher following Food and Drug Administration (FDA) approval of its Alzheimer’s disease drug. Tesla (TSLA) shares continue to rise after second-quarter deliveries beat expectations. U.S. stock futures are little changed ahead of a shortened trading session. Here’s what investors need to know today.
1. US markets close at 1pm ET for Independence Day
US financial markets will close at 1pm today ahead of the Independence Day holiday on Thursday, when banks, government agencies and many businesses are closed. Markets will resume normal trading hours on Friday, with attention focused on the release of U.S. employment and wages data for June.
2. Paramount Global shares soar on news of merger deal with Skydance
Paramount Global (PARA) shares are up more than 12% in pre-market trading. The Wall Street Journal Skydance Media is reportedly planning to acquire National Amusements, a media company owned by Shari Redstone, which owns approximately 77% of Paramount’s voting stock, for $1.75 billion and then merge Skydance with Paramount. The deal comes after an attempt by David Ellison’s Skydance to buy Paramount was scuttled when Redstone terminated negotiations last month.Paramount shares closed up 5.7% on Tuesday. The New York Times Billionaire Barry Diller’s IAC is reportedly considering a bid for the media giant. (IAC Investopedia The deal with Skydance is subject to approval by a special committee of Paramount’s directors. journal report.
3. Fed minutes, employment and services data to be released before the holiday
Market participants will receive a number of economic reports today ahead of the holiday, including data on the job market and services sector, as well as updates from the Federal Reserve. First up is the ADP Employment report, which gives an indication of private sector employment, and is released ahead of Friday’s U.S. Employment report. Initial jobless claims, which are usually released every Thursday, will also be released today. The Purchasing Managers’ Index (PMI) report will provide an indication of the health of the services sector, while factory orders data will provide an indication of the outlook for manufacturing. Also today, New York Fed President John Williams will speak in Europe, and the minutes of the Federal Open Market Committee’s (FOMC) June meeting will be released, providing an update on officials’ views on inflation, interest rates, and the current state of the economy.
4. Eli Lilly stock rises after FDA approves Alzheimer’s drug
Shares of pharmaceutical giant Eli Lilly (LLY) were slightly higher in premarket trading, a day after the Food and Drug Administration approved the company’s Alzheimer’s disease treatment donanemab, also known as Kisunra, after decades of development and recent regulatory delays. Xanra will compete with Alzheimer’s disease drug Lukembi from Biogen (BIIB) and its Japanese partner Eisai.Shares of Eli Lilly and Novo Nordisk (NVO) fell on Tuesday after President Joe Biden and Sen. Bernie Sanders criticized the companies over the cost of prescription weight-loss drugs.
5. Tesla shares rise further as second-quarter deliveries beat expectations
Shares of electric vehicle (EV) maker Tesla (TSLA) continued to gain momentum following its better-than-expected second-quarter delivery report on Tuesday, rising 2% in pre-market trading. The early morning move came after Tesla shares rose 10% in the previous trading day, hitting their highest level since January. The electric-vehicle maker said it delivered 443,956 vehicles in the second quarter, 5% lower than the same period a year ago but above analysts’ expectations of about 439,000. Tesla’s share price gains have helped it recover from losses earlier this year, but the stock is still down about 7% year to date.
