Here are five things you must know for Monday, July 2:   

1. -- Stocks Slide as Trade Tensions Dent Sentiment

U.S. stock futures

declined on Monday, July 2, and global stocks fell as trade tensions between Washington and its major economic partners continued to weigh on market sentiment.

Contracts tied to the Dow Jones Industrial Average I:DJI  fell 110 points, futures for the S&P 500 I:GSPC  were down 14.85 points and Nasdaq I:IXIC futures fell 47.25 points.

With just days to go before Donald Trump's decision to impose fresh tariffs on $34 billion in China-made goods goes into effect, and with investors in the region fearing a prolonged trade war could sap growth prospects in the world's second-largest economy, China's benchmark Shanghai Composite fell 2.52%, slipping further into bear market territory.

The U.S. economic calendar on Monday includes the Purchasing Managers' Manufacturing Index for June at 9:45 a.m. ET, and Construction Spending for May at 10 a.m.

Earnings are expected Monday from Herman Miller Inc. (MLHR) - Get Report .

2. -- Tesla Meets Model 3 Goal

Tesla Inc. (TSLA) - Get Report  reached its goal of producing 5,000 Model 3s in the last week of the second quarter, according to an email from CEO Elon Musk to employees seen by TheStreet. "We did it!" Musk exclaimed in the letter. A Tesla spokesman confirmed the letter's authenticity. Electrek first reported the news. 

An Instagram post of Tesla employees celebrating the milestone was making the rounds. Actual numbers are expected to be released before Wednesday, July 4.

  • Read More About Tesla's Future

Tesla shares will be in focus on Monday as the achievement could set off a debate on whether Tesla still will need to raise capital this year, which Musk said will not happen. For it not to happen, Musk likely will have to sustain the recent Model 3 production surge, and  ramp up production further in the weeks ahead. 

"Hitting this milestone is a win for Tesla, but the real accomplishment will be if the company can keep up this pace," said Jeremy Acevedo, manager of industry analysis at Edmunds. 

Tesla rose 6.1% in premarket trading on Monday.

3. -- Activist Pushes for Urgent Changes at Nestle

Shares of Nestle S.A.  (NSRGY) - Get Report  drifted lower in Zurich on Monday even as investors scanned a letter from activist Dan Loeb that called for faster asset sales from the food giant and further simplification of its corporate structure.

Third Point LLC, the activist hedge fun managed by Loeb that unveiled a $3 billion holding in Nestle last year, published a letter to investors on Sunday, July 1, that called for "urgency - rather than incrementalism" in changes to the company's broader strategy, which Loeb insisted should be focused on three main business areas -- beverages, nutrition and groceries -- and must include the sale of divisions such as frozen foods and confectionary.

"Nestle has been too slow to react to significant changes across the consumer products industry given structural issues around strategy, portfolio, and organization, and thus operates far below its potential," Third Point said in a presentation published on its "NestleNow" activist website. "Mark Schneider has acknowledged the need for improvement, but pace and magnitude of change seem insufficient and reflect Nestle's staid, sometimes sclerotic, culture and tendency toward incremental improvements."

4. -- Dell to Acquire VMWare's Tracking Stock

Dell Technologies Inc.


 said Monday it would offer to swap stock that tracks its VMware Inc.

(VMW) - Get Report

subsidiary for either cash or shares in the computer company controlled by founder and CEO Michael Dell.

Dell said investors can swap the VMware Class V tracking shares for either 1.3665 in Dell common stock or $109 in cash each, with a ceiling of $9 billion for the total transaction. The price gives investors a 29% premium to the Class V closing price on Friday, June 29.

"I am proud to lead this great company into its next chapter as we continue to evolve and grow to the benefit of our customers, partners, investors and team members," said Michael Dell. "Unprecedented data growth is fueling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services to enable the digital, IT, security and workforce transformations of our customers."

"Most importantly, I remain deeply committed to this company and working with our world-class team to build the long-term value of Dell Technologies and its businesses," said Dell, who owns 72% of the parent company.

Shares of Dell Technologies rose 12.3% to $95 in premarket trading on Monday.

5. -- LeBron James Joins the Los Angeles Lakers

LeBron James agreed to a four-year, $154 million contract with the Los Angeles Lakers, joining one of the league's most storied franchises.

James, arguably the NBA's best player, led the Cleveland Cavaliers to the NBA Finals four straight years, winning one championship.