5 Things to Know Before the Stock Market Opens

U.S. stock futures are rising entering the third quarter; Spirit AeroSystems (SPR) shares are surging after Boeing (BA) said it would buy the parts supplier for $4.7 billion in stock, while also compensating Airbus to take some of Spirit's assets; the U.S. Department of Justice is reportedly planning to criminally charge Boeing with fraud over two fatal crashes and ask it to plead guilty or face a trial; Meta Platforms’ (META) "pay or consent" advertising model may have violated the European Union's Digital Markets Act (DMA); and BlackRock (BLK) buys British data group Preqin for $3.2 billion in cash. Here's what investors need to know today.

1. US Stock Markets Rising Entering Second Half of 2024

U.S. stock futures are rising in premarket trading entering the second half of 2024. Markets wrapped up a strong second quarter that featured investors’ frenzy for artificial intelligence (AI) and softening inflation data that is boosting Wall Street’s hopes for at least one interest-rate cut later this year. AI demand helped drive chip designer Nvidia's (NVDA) 36% gain in the second quarter, as well as Apple's (AAPL) rebound from its first-quarter slump, with both tech giants’ market caps now above $3 trillion, joining Microsoft (MSFT) in the exclusive club. But the softness of the other parts of the market was also evident: Six out of 11 sectors in the S&P 500 lost market value in the three months through June. This is a holiday-shortened week, with markets closing early on Wednesday and remaining shut Thursday for Independence Day.

2. Boeing Buys Back Spirit AeroSystems for $4.7B

Spirit AeroSystems shares (SPR) are surging more than 4% in premarket trading after Boeing (BA) said it would buy back the parts supplier for $4.7 billion in stock, or $37.25 a share. Boeing, whose shares are edging lower, said it would buy Spirit, which it spun off in 2005, for $8.3 billion including debt. Boeing has been struggling ever since a 737 Max 9 aircraft's door plug blew out in midair in January. As part of the deal, Spirit will offload some of its assets in Europe for a nominal $1 to Boeing's rival Airbus, including $559 million in compensation, the European plane maker said.

3. Boeing Expected to Face DOJ Criminal Charge

Separately, the U.S. Department of Justice (DOJ) is reportedly planning to criminally charge Boeing with fraud over two fatal crashes and ask it to plead guilty or face a trial. Reuters said that the DOJ's proposed plea deal includes a $487.2 million penalty, half credited from a previous settlement. The Wall Street Journal reported that prosecutors plan to ask the plane maker to plead guilty to “deceiving air-safety regulators about a crucial aspect of the 737 MAX planes” that were involved in the 2018 and 2019 crashes. By pleading guilty, Boeing might be convicted of a felony crime, which would hurt the its ability to win government contracting work.

4. Meta Latest Tech Giant Accused of Violating EU’s DMA 

Meta Platforms’ (META) "pay or consent" advertising model may have violated the Digital Markets Act (DMA), the European Commission said, as the Facebook and Instagram parent becomes the latest tech giant to potentially face a fine under the European Union's (EU) sweeping legislation aimed at boosting tech competition. The regulators said the model “forces users to consent to the combination of their personal data,” while not being offered a less personalized version of either Facebook and Instagram. Meta can still defend its case but if it is found to have violated the DMA, the Commission can impose fines of up to 10% of Meta’s "total worldwide turnover." The Commission said last week that Microsoft (MSFT) may have violated antitrust rules by bundling Teams with its other Office products, and also accused Apple (AAPL) of violating the DMA. Meta shares are up about 0.5% in premarket trading.

5. BlackRock Buys UK Data Firm Preqin for $3.2B 

BlackRock (BLK) said it is buying British data group Preqin for 2.55 billion British pounds ($3.2 billion) in cash, increasing the Wall Street giant’s access to data in the fast-growing private markets sector. "Private markets data is estimated to be an $8 billion total addressable market and growing 12% per year, reaching $18 billion by 2030," BlackRock said. BlackRock shares are up 0.5% in premarket trading.