5 Things to Know Before the Stock Market Opens

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Boeing (BA) shares are moving higher after it reached a plea deal with the U.S. Department of Justice (DOJ) on a felony charge related to misleading airline regulators ahead of two deadly 737 MAX plane crashes; Paramount Global (PARA) stock is gaining after it agreed to a merger deal with Skydance Media; Tesla (TSLA) shares are edging lower after surging 27% last week to move into positive territory for the year; Meta Platforms (META) stock is adding to all-time highs; and UK PepsiCo distributor Britvic agrees to a $4.2 billion takeover offer from Danish brewer Carlsberg. Here’s what investors need to know today. 

1. Boeing Shares Edge Higher After Plea Deal on 737 MAX Crashes

Boeing (BA) agreed to plead guilty to a charge it misled airline regulators ahead of two deadly crashes of its 737 MAX plane, and will pay a $243.6 million criminal fine and spend at least $455 million to improve its compliance and safety programs, according to a court filing. The plea agreement with the Justice Department to one felony count of conspiracy to defraud the U.S. could pose issues for Boeing’s $22.8 billion in Defense Department contracts. An attorney for family members of the 346 people killed in the two crashes said they would object to the deal between Boeing and prosecutors, which must still be approved by the court, The Wall Street Journal reported. Shares of Boeing are up less than 1% in premarket trading.

2. Paramount Global Shares Rise After Merger Agreement with Skydance Media

Paramount Global (PARA) has agreed to merge with Skydance Media in a deal that ends months of negotiations between principals and offers a lifeline to the struggling media company. David Ellison’s Skydance Media will pay $1.75 billion to acquire the Shari Redstone-owned National Amusements, which controls a majority of the shares of Paramount, then would merge with Paramount,The New York Times reported. The deal comes after several months of negotiations that included Redstone walking away from a prior offer. Shares of Paramount, which were down about 20% year-to-date through Friday’s close, are 2% higher in premarket trading.

3. Tesla Shares Dip After Surging 27% Last Week

After surging 27% in trading last week, shares of Tesla (TSLA) are lower by 1% in premarket trading as the electric vehicle (EV) maker looks to keep its rally going after surging on a better-than-expected second-quarter deliveries report to move into positive territory for the year. At a little over $248 a share in premarket trading, Tesla has come down from the year-to-date high of $252.37 it set Friday, but is still well over the average analyst price target of almost $200. Some analysts have raised their price targets on Tesla, with Wedbush Securities moving to $300 and Bank of America pricing the EV maker at $275 a share, although JPMorgan analysts kept their “underweight” rating on the company and its price target of $115.

4. Meta Shares Rise After Setting Record High on AI Enthusiasm

Meta Platforms (META) shares are edging higher after the Facebook and Instagram parent set a record-high close on Friday. Meta’s rise comes amid enthusiasm for artificial intelligence (AI), with analysts at Bernstein indicating that AI-powered algorithms are boosting time spent on Meta’s apps. The stock’s rise last week came despite pressure from the European Union (EU), which said in preliminary findings that the company’s practice of “pay or consent” advertising on its products violated the Digital Markets Act (DMA).

5. UK PepsiCo Distributor Britvic Agrees to $4.2B Carlsberg Takeover Offer

U.K. and Ireland PepsiCo distributor Britvic is surging almost 5% higher in London trading after it agreed to a takeover bid from Danish brewer Carlsberg in a deal valued at 3.28 billion British pounds ($4.2 billion) in cash. The deal comes after Carlsberg raised its bid for the company after Britvic rejected a lesser offer. Executives said the deal is expected to combine Britvic’s soft drink business, which includes bottling and distributing PepsiCo (PEP) products, with the Carlsberg’s beer portfolio across markets in the U.K. and Western Europe.