Paramount releases Skydance deal renewal report

The major U.S. stock indexes posted mixed results in a shortened trading day on Wednesday, with the closing bell sounding at 1 p.m. ET ahead of Thursday’s Fourth of July celebrations.

The S&P 500 closed the pre-holiday session 0.5% higher, notching a record close for the second day in a row. The tech-heavy Nasdaq also continued its record run, rising 0.9% to a new high. The Dow ended the day slightly lower, pressured by losses in UnitedHealth (UNH) and other health care components.

Paramount Rise, Outperforming S&P 500

Shares of Paramount Global (PARA) rose 6.9%, the best performer in the S&P 500, on reports that the entertainment giant had reached a tentative agreement to merge with production company Skydance Media. Negotiations between the companies reportedly stalled last month, leading to speculation about potential alternative suitors for Paramount.

Skydance will reportedly acquire National Amusements, the holding company owned by Shari Redstone that controls a majority of Paramount’s voting stock, and then merge with Paramount.

Shares of solar panel maker First Solar (FSLR) rose 6.6%, reversing losses suffered Tuesday after investment firm Baird lowered its price target on the stock, citing revised price and cost forecasts. First Solar remains well-positioned to meet growing demand for clean energy to power artificial intelligence (AI) data centers, but the outcome of the fall presidential election could have a significant impact on the company, which has benefited from tariffs and tax breaks under the Biden administration.

Tesla keeps growing

Tesla (TSLA) shares remained in the fast lane, jumping 6.5% on Wednesday, extending gains posted in the previous session after the electric vehicle (EV) maker reported better-than-expected second-quarter vehicle deliveries. The automaker is scheduled to release its quarterly earnings report on July 23, and Citi analysts say the focus will be on Tesla’s gross margins and potential product launch updates.

Shares of pharmaceutical giant Walgreens Boots Alliance (WBA) fell 4.1%, the biggest loser among S&P 500 components, after UBS analysts cut their price targets for the stock. Wednesday’s downward move extended sharp declines seen last week after Walgreens missed quarterly estimates, lowered its outlook and said it would close underperforming stores.

Constellation Brands Ends Day in the Red After Mixed Earnings

Alcoholic beverage maker Constellation Brands (STZ) reported mixed earnings results for the first quarter of fiscal 2025, beating earnings per share (EPS) estimates but posting revenues slightly below expectations. The company’s Modelo Especial brand remains the best-selling beer in the U.S., with beer sales up year-over-year, but wine and spirits sales down. After an initial rally, Constellation Brands shares reversed course, ending the session down 3.3%.

Humana (HUM) shares fell 3.2% on reports of a class action lawsuit filed against the health insurer. The complaint alleges that the company materially misled investors about the potential impact on profits from deferred demand for medical procedures following the pandemic, leading to higher insurance take-up rates that hurt the company’s bottom line.