Investing.com -- These are the top 5 things to know in markets on Thursday, April 4.
1. Trump to Meet Liu He
U.S. President Donald Trump will meet China’s top trade negotiator, vice-premier Liu He, in Washington, in what some see as proof that the two countries are within touching distance of some kind of agreement.
Bloomberg cited officials saying a draft agreement gives China until 2025 to meet commitments on increasing purchases of U.S. goods and services, while allowing U.S. companies to wholly own Chinese companies.
The Wall Street Journal cautioned, however, that the U.S. insistence on keeping some tariffs in place on Chinese goods remains a key sticking point.
2. Wall Street Set to Open Lower After More Weak Data
Wall Street looks set to open lower after another blast of disappointing economic data from Europe fanned concerns about the strength of the economy that had already risen after yesterday’s disappointing ADP (NASDAQ:ADP) payrolls report.
A 05.45 AM ET (09.45 GMT), the S&P 500 futures contract was down 3.4 points, or 0.1%, the Dow futures contract was down 26 points, also a 0.1% drop, while the tech-heavy Nasdaq 100 Futures contract was down 13.25 points, or 0.2%
European bourses fell earlier Thursday morning after Germany announced factory orders fell by 4.2% in February, the sharpest drop in two years. Export orders from outside the euro zone fell particularly sharply.
3. Jobless Claims and Fed Speeches
Sandwiched between the ADP report and the government’s employment report due on Friday, numbers for last week’s initial jobless claims will be released at 07.30 AM ET.
The consensus forecast is for a slight increase in claims to 216,000, although that would still leave the 4-week rolling average, which analysts see as a better reflection of the market, extending a decline that stretches back to February.
Later in the day, the New York Federal Reserve President John Williams and Cleveland Fed President Loretta Mester will both hold speeches
4. Tesla Slumps After Shocking 1Q Report
Tesla (NASDAQ:TSLA) stock is set to open sharply lower after the company reported a 31% drop in deliveries in the first quarter to 63,000. Sales were hit by a reduction in U.S. federal tax credits for electric cars at the end of last year, and by difficulties in delivering to Europe and China.
The company upheld its full-year forecast of 360,000 to 400,000, a target that demands a big increase in sales over the next nine months.
Tesla said it finished the quarter with “sufficient” cash, but didn’t give any further details.
5. Oil Rally Fades
The rally in crude oil prices faded after U.S. government data showed a surprising 7.2 million barrel increase in inventories last week, boosted by a rise in net imports.
The benchmark West Texas Intermediate futures contract has eased back to $62.24 a barrel from a high of $62.87 on Wednesday, while the international benchmark Brent has retreated to $69.03 from a high of just under $70.
Thursday’s data were affected to some degree by the closure of the Houston Ship Channel, which has affected import and export loadings and refinery runs.
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