5 things to know before the stock market opens

Markets will close at 1 p.m. ET ahead of the Independence Day holiday on Thursday; shares of Paramount Global (PARA) jump 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 service sector data, as well as updates from the Federal Reserve; shares of Eli Lilly (LLY) edge higher on Food and Drug Administration (FDA) approval of its Alzheimer's treatment; and shares of Tesla (TSLA) continue to climb after higher second-quarter deliveries. U.S. stock futures are little changed ahead of the shortened trading day. Here's what investors need to know today.

1. US markets close at 1:00 p.m. ET for the Independence Day holiday

U.S. financial markets will close at 1 p.m. ET today, ahead of the Independence Day holiday on Thursday, when banks, government offices and many businesses will be closed. Markets will resume normal trading hours on Friday, which will be marked by the release of U.S. employment and wage data for June.

2. Paramount Global shares jump on rumors of merger deal with Skydance

Paramount Global (PARA) shares are trading more than 12% higher in pre-market trading after a the wall street journal reports 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 stock, and then merge Skydance with Paramount. The deal comes after David Ellison's Skydance's previous efforts to acquire Paramount appeared to have stalled when Redstone ended negotiations last month. On Tuesday, Paramount shares closed up 5.7% after a New York Times reports that billionaire Barry Diller's IAC was considering a bid for the media giant. (IAC is the owner of Investopedia (parent Dotdash Meredith.) The potential deal with Skydance would be subject to approval by a special committee of Paramount directors, the Newspaper reported.

3. Fed Minutes, Employment and Services Data Before Holiday

Market watchers will be treated to a slew of pre-holiday economic reports today, including data on the labor market and the service sector, as well as updates from the Federal Reserve. First up is the ADP employment report, which will provide a snapshot of private sector employment and precedes 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 service sector, while factory orders data will provide a snapshot of manufacturing. Also today, New York Fed President John Williams will speak in Europe, while the release of the minutes of the Federal Open Market Committee’s (FOMC) June meeting will provide an update on how policymakers view inflation, interest rates and the current state of the economy.

4. Eli Lilly shares rise after FDA approves Alzheimer's treatment

Shares of pharmaceutical giant Eli Lilly (LLY) are up in premarket trading, a day after the Food and Drug Administration (FDA) approved its Alzheimer's drug, donanemab, or Kisunla, after decades of development and recent regulatory delays. Kisunla will compete with Leqembi, an Alzheimer’s treatment developed by Biogen (BIIB) and its Japanese partner Eisai. Shares of Eli Lilly and Novo Nordisk (NVO) fell on Tuesday as U.S. President Joe Biden and Sen. Bernie Sanders criticized the companies for the cost of their prescription weight-loss drugs.

5. Tesla shares continue to climb after higher second-quarter deliveries

Tesla (TSLA) shares are up 2% in premarket trading as the electric vehicle (EV) maker continues to rally on its better-than-expected second-quarter deliveries report released Tuesday. The morning rally comes after Tesla shares jumped 10% in the previous session to their highest levels since January. The electric vehicle maker said it delivered 443,956 vehicles in the second quarter, down 5% from the same period last year but ahead of analysts’ expectations of about 439,000 deliveries. Tesla’s gains help reverse losses from earlier this year, though shares are still down about 7% year to date.