5 Things to Know Before Markets Open

List of contents[Close]

    The first Tesla Cybertruck rolled off the production line in Texas and Microsoft reached a deal with Sony that keeps Call of Duty on PlayStation as the company continues to work toward its merger with Activision. Here’s what investors need to know today.

    1. Tesla Produces First Cybertruck at Texas Plant

    The first of Tesla’s (TSLA) Cybertrucks was built at its Giga Texas plant in Austin, ending years of production delays for the angular-styled pickup truck that CEO Elon Musk first unveiled in 2019. Tesla said it will start producing the vehicles in volume in 2024, with analysts expecting 10,000 Cybertruck deliveries this year, and as many as 100,000 following in 2024. Shares of Tesla were up 1.6% in pre-market trading.

    2. Microsoft Reaches Deal with Sony on Activision’s ‘Call of Duty’ Game

    Microsoft (MSFT) reached an agreement with Sony Group (SONY) to keep the Activision Blizzard (ATVI) game Call of Duty on its PlayStation system, addressing an issue of concern over the proposed $75 billion Microsoft-Activision merger. Sony had opposed the merger on fears that Microsoft could restrict for which gaming platforms it produces popular titles like Call of Duty, instead making them exclusive to Microsoft’s Xbox system. Activision shares soared more than 4% in pre-market trading on the news, while Microsoft ticked up 0.3% and Sony was unchanged.

    3. United Airlines Strikes Deal With Pilots’ Union, Delivering 40% Pay Hike

    United Airlines (UAL) shares fell almost 1% in pre-market trading after it reached an agreement with its pilots union that includes pay raises of as much as 40% over a four-year period, bringing a conclusion to months of negotiations that included picketing at some airports. The deal comes months after Delta Air Lines and American Airlines struck deals with their pilots unions offering similar raises. Southwest Airlines is currently in negotiations with its pilots union, which is seeking release from federal mediation, potentially setting up a strike.

    4. Teamsters Head Asks White House Not to Intervene With UPS Strike

    The Teamsters labor union president asked the White House not to intervene if there is a strike by United Parcel Service (UPS) workers. The Teamsters president has called on workers to be prepared to strike as negotiations continue ahead of the July 31 expiration of the five-year labor agreement. The Teamsters are pushing UPS for higher part-time wages and said as many as 340,000 workers could strike on August 1 if a deal isn’t reached. Shares of UPS were little changed in pre-market trading.

    5.  Chewy Shares Surge on Analyst Upgrade

    Shares of online pet supply retailer Chewy (CHWY) surged 5% in pre-market trading after a Goldman Sachs analyst upgraded it to "Buy" from "Neutral," setting a price target of $50 for the stock that traded at just under $38. Chewy’s share price has dropped 4% in the last month and is down more than 11% over the past year.

    Leave a Comment