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Day Ahead: Top 3 things to watch

Published 2018-07-02, 04:21 p/m
© Reuters.  What to watch out for in tomorrow's session
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow

1. Durable Goods, Factory Orders on Tap

Trading volumes are expected a touch lighter this week amid the July 4 Independence Day holiday but a few U.S. economic data will be closely monitored for signs of ongoing U.S. economic strength.

Factory orders for May are forecast to show a 0.1% increase, rebounding from a 0.8% decline the prior month.

U.S. markets made a positive start to the second half of year despite the threat of an increase in trade-tariff rhetoric as the U.S. tariffs on Chinese imported goods are slated to come into effect on July 6.

The S&P 500 closed higher at 2,726.71, up 0.31%.

** U.S. stocks will close early at 1:00 PM EDT on Tuesday ahead of the July 4 Independence Day in the United States.

2. API Crude Stockpiles Data Eyed

Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute due Tuesday after data last week showed a draw in crude inventories for the third straight week.

The American Petroleum Institute reported crude oil stockpiles fell by 9.228 million barrels for the week ended June 22. The Energy Information Administration reported a similar draw in crude stockpiles of 9.891 million for the same period.

Crude oil futures fell 21 cents to settle at $73.94 weighed down by a rise in output from Saudi and Russia.

3. Tesla Reversal in Focus

Tesla shares closed lower Monday despite rising more than 5% in early trade as traders questioned whether the electric automaker would be able to sustain the pace of production that saw it reach its target of producing 5,000 model 3 vehicles a week.

Tesla said Monday it produced 5,031 Model 3 cars in the last seven days of the second quarter and reaffirmed its positive cash flow and profit outlook for the year. The company, however, delivered 40,740 vehicles delivered in the second quarter compared with the Wall Street consensus of approximately 51,000.

“There’s a big difference between making 5K Model 3 units for 1 week vs. sustaining 5K per week,” Morgan Stanley analysts said.

Shares of Tesla (NASDAQ:TSLA) closed at $355.07, down 2.30%.

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