Top Stock Stories For Tuesday, July 5

U.S. stocks and the price of U.S. crude oil fell Tuesday, while the yield on the U.S. 10-year Treasury note settled at a historic low of 1.367%, as investors reversed course after last week's relief rally in favor of safe haven assets. Amid uncertainty following the U.K.'s vote to leave the European Union, benchmark 10-year government debt yields in Germany, the U.K., Switzerland, France, Denmark and Sweden all dropped to new historic lows as well.

Economic Events

In the U.S., factory orders fell 1% in May, versus expectations for them to have declined 0.8%. The final reading on durable goods orders showed they declined 2.3% in May, with orders down 0.3% when transportation is excluded, both of which were roughly in-line with expectations. Additionally, a new study released by Rystad Energy concluded that the U.S. holds more oil reserves than Saudi Arabia and Russia, marking the first time the country's reserves are estimated to surpass those held by the world's biggest exporting nations. U.S. crude for August delivery fell $2.39, or 4.9%, to $46.60 a barrel on the New York Mercantile Exchange.

In Europe, the British pound slid to a 31-year-low against the dollar while the Bank of England warned that the outlook for stability of the financial system has become "challenging" following the U.K. referendum. Also, the BofE confirmed that it has agreed to lower capital requirements for U.K. banks, which should allow them to lend additional funds to U.K. businesses and households.

Company News

Shares of Tesla (TSLA) slipped a bit over 1% after the company reported 14,370 vehicles were delivered in the second quarter, missing its forecast of 17,000. However, the electric carmaker said it sees producing and delivering 50,000 vehicles in the second half of the year, with its third quarter output predicted to reach 2,200 vehicles per week and its output reaching 2,400 vehicles per week in the fourth quarter...

Delta Air Lines (DAL) sunk about 3%, and dragged down its peers in the airline sector as well, after reporting that its consolidated passenger unit revenue, or PRASM, declined 5% year-over-year in June and disclosing it now expects a June quarter operating margin of approximately 17%.

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