Stocks opened the day higher but closed lower and the Dow posted a final 14-point decline to 26,048. Trading volume was higher on the day. Trade news continues to push stocks in different directions. Banks were higher today as the treasury yield curve appears to be steepening ever so slightly.
Crude oil prices have fallen 20% from highs that were hit back in April when WTI reached $65 a barrel. The selloff is due to fears of a global trade related slowdown coupled with increasing production from the US. While the US Energy Information Agency is lowering its 2019 demand forecast for oil, the stockpile report for May showed a surprise drop in inventories which sent futures up from $53.26 to over $54 per barrel. Oil seems to be in a trading range with $50 on the low end and $70 on the high end.
Speaking of oil, Tesla is having its annual meeting in Fremont, CA today. The company continues to be a target for short sellers but Cleantechnica reported that since the start of the year the Tesla Model 3 is the number one selling fully electric car in Europe ahead of the Renault Zoe and the Nissan Leaf. In the US, the Model 3 is outselling luxury brands like BMW, Audi and Mercedes. In California, the Model 3 is the third bestselling car lagging only the Honda Civic and the Toyota Camry both of which are priced about $10k less. It also looks like daily orders for the Model 3 have increased from just under 800 cars per day to almost 1,000 cars per day. In China, Tesla continues to build its giga factory and while there are concerns over trade issues and intellectual property theft, EV sales in China are rising like a flock of pigeons bolting from a Civil War statue. This annual meeting should be interesting.