Here are five things you must know for Wednesday, July 3:
1. -- Stock Futures Rise Modestly, Bond Markets Rally
U.S. stock futures rose modestly on Wednesday as investors scaled back equity market bets ahead of the Fourth of July holiday on Thursday and the U.S. jobs report on Friday.
Contracts tied to the Dow Jones Industrial Average gained 58 points, futures for the S&P 500, which notched another record closing high on Tuesday, rose 7.65 points. Nasdaq futures were up 29.25 points.
Government bond markets around the world continued to rally as investors faded bets linked to U.S.-China trade talks and focused on flagging global growth prospects, especially manufacturing in the world's largest economies.
Market sentiment was further complicated by worries that a new tariff dispute between Washington and Brussels could escalate over the coming weeks as the two sides continue to argue the legality of subsidies offered to planemakers Boeing (BA - Get Report) and Airbus.
That was compounded by a Reuters report that suggested enforcement officers at the Commerce Department have urged staff to treat China's Huawei Technologies as a blacklisted company, despite Donald Trump's statement over the weekend that some export restrictions on Huawei would be relaxed following the re-opening of trade talks with Beijing.
2. -- ADP Employment Report Highlights Wednesday's Calendar
With U.S. stock markets and government offices closed Thursday for the Fourth of July holiday, the economic calendar in the U.S. on Wednesday is a busy one.
The calendar includes the ADP National Employment Report for June at 8:15 a.m. ET, International Trade for May at 8:30 a.m, weekly Jobless Claims at 8:30 a.m., Factory Orders for May at 10 a.m., the ISM Non-Manufacturing Index for June at 10 a.m., and Oil Inventories for the week ended June 28 at 10:30 a.m.
3. -- Tesla Jumps on Record Second-Quarter Deliveries
Tesla said total deliveries for the quarter rose 51% from the same period last year to a company record 95,200 vehicles, well ahead of analysts' expectations of 91,000. Deliveries for Tesla's flagship Model 3 sedan were 77,550, also higher than forecasts.
The company said overall production in the second quarter was 87,048 units.
Telsa also said it was "well positioned" to grow production and deliveries in the third quarter, even as U.S. tax credits that support purchases fell to $1,875 as of July 1, but made no reference to profitability ahead of the release of its second-quarter earnings, which are likely to be published in the first week of August.
"Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct," Tesla said in a statement posted on its website. "Tesla vehicle deliveries represent only one measure of the company's financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles."
The stock rose 7.55% to $241.50 in premarket trading Wednesday.
4. -- Trump to Nominate Two Economists to Fed Board
Donald Trump said he plans to nominate two economists to fill the two vacancies on the Federal Reserve board.
Trump tweeted that he plans to nominate Christopher Waller, director of research at the Federal Reserve Bank of St. Louis, and Judy Shelton, U.S. executive director at the European Bank for Reconstruction and Development, to the board, which oversees U.S. monetary policy.
Waller is a former economics professor at Notre Dame.
Shelton, an advocate of a return to the gold standard, served as an economics adviser to Trump after jumping ship from the Ben Carson presidential campaign.
Shelton told Fortune Magazine in a 2016 interview "some people may think of [the gold standard] as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it's universal."
Trump has been a fierce critic of Fed Chairman Jerome Powell. He has argued that the central bank shouldn't have raised rates last fall, and has urged the Fed to cut rates faster. Most economists expect an interest rate cut from the Fed at its meeting at the end of July.
5. -- Symantec Soars on Report Broadcom Plans Takeover
A deal could be reached in weeks, Bloomberg reported, citing people familiar with the matter.
Symantec shares rose 19.19% to $26.34 in premarket trading. Broadcom declined 4.07% to $283.30 in after-hours trading Tuesday.
Broadcom last year purchased CA Technologies for $19 billion but it failed in its attempt to acquire Qualcomm (QCOM - Get Report) . That deal was blocked by the Trump administration on national security concerns.
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