5 Things to Know Before the Stock Market Opens

Markets will close at 1 p.m. ET in advance of the Independence Day holiday on Thursday; Paramount Global (PARA) shares are jumping in premarket trading on reports that a merger deal has been reached with Skydance Media after months of negotiations; investors will be closely watching a stream of jobs and services sector data, as well as updates from the Federal Reserve; Eli Lilly (LLY) shares are edging higher on Food and Drug Administration (FDA) approval of its Alzheimer’s treatment; and shares of Tesla (TSLA) are continuing to rise after a second-quarter deliveries beat. U.S. stock futures are little changed ahead of the shortened trading day. Here’s what investors need to know today. 

1. U.S. Markets Close at 1 p.m. ET for Independence Day Holiday

U.S. financial markets will close at 1 p.m. ET today ahead of Thursday’s Independence Day national holiday, when banks, government offices, and many businesses are closed. Markets will resume standard operating hours on Friday, which will be highlighted by the release of June U.S. employment and wage data.

2. Paramount Global Shares Jump on Reports of Merger Deal with Skydance

Shares of Paramount Global (PARA) are trading more than 12% higher in premarket trading following a Wall Street Journal report that Skydance Media would pay $1.75 billion to buy National Amusements—the media company owned by Shari Redstone that controls about 77% of Paramount’s voting shares—then merge Skydance with Paramount. The deal comes after previous efforts from David Ellison’s Skydance to acquire Paramount appeared halted when Redstone ended negotiations last month. On Tuesday, Paramount shares closed 5.7% higher after a New York Times report that billionaire Barry Diller’s IAC was exploring a bid for the media giant. (IAC is the owner of Investopedia parent Dotdash Meredith.) The potential Skydance deal would be subject to approval by a special committee of Paramount directors, the Journal reported.

3. Fed Minutes, Jobs and Service Sector Data Come Ahead of Holiday

Market watchers will get a slew of economic reports today ahead of the holiday, including data on the jobs market and services sector, and updates from the Federal Reserve. First up is the ADP employment report, which will provide a look at private sector employment and comes ahead of Friday’s U.S. jobs report. Initial jobless claims, normally released weekly on Thursdays, will also be released today. The Purchasing Managers Index (PMI) report will show the health of the services sector, while factory orders data will offer insight into manufacturing. Also today, New York Fed President John Williams will speak in Europe, while the release of the minutes to the June meeting of the Federal Open Market Committee (FOMC) will provide an update on how officials view inflation, interest rates, and current economic conditions. 

4. Eli Lilly Shares Move Higher After FDA Approves Alzheimer’s Treatment

Shares of pharmaceutical giant Eli Lilly (LLY) are edging higher in premarket trading, a day after the Food and Drug Administration (FDA) approved its Alzheimer’s disease drug donanemab, or Kisunla, after decades of development and recent regulatory delays. Kisunla will compete with an Alzheimer’s treatment from Biogen (BIIB) and Japanese partner Eisai called Leqembi. On Tuesday, shares of Eli Lilly and Novo Nordisk (NVO) fell as U.S. President Joe Biden and Senator Bernie Sanders criticized the companies over the costs of their prescription weight-loss drugs.

5. Tesla Shares Rise Further After Q2 Deliveries Beat

Shares of Tesla (TSLA) are up 2% in premarket trading as the electric vehicle (EV) maker continues to rise on momentum from its better-than-expected Q2 deliveries report on Tuesday. The early morning move comes after Tesla’s shares jumped 10% in the prior session to reach their highest levels since January. The EV maker reported delivering 443,956 vehicles in the second quarter, 5% lower than the same period last year but ahead of analyst expectations of about 439,000 deliveries. Tesla’s gains are helping reverse losses from earlier in the year, though shares are still down about 7% year-to-date.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.