Stock futures point to a higher open
U.S. stocks look set to rebound on Tuesday with futures pointing higher in morning trade following heavy losses in the previous session that were triggered by the devaluation of the yuan.
On Tuesday morning, the People’s Bank of China eased currency war fears by setting the yuan’s reference point at 6.9683, a figure higher than the 6.9736 that analysts had forecast.
At 5:21 a.m. ET, the Dow futures contract was up 247 points, or 0.97% to 25,797, the tech-heavy Nasdaq 100 Futures contract climbed 99 points, or 1.34% to 7,484.25, while the S&P 500 futures contract gained 28.12 points, or 0.3% to 2,858.12.
Trump administration brands China as a currency manipulator
Washington has labelled China a “currency manipulator” after Beijing authorities let the yuan drop below its 7-to-1 ratio with the American dollar on Monday, the first time since 2008.
“Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator. As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions,” the Treasury Department said in a press release late Monday.
China devalued the yuan after President Donald Trump threatened to impose 10% tariffs on $300 billion worth of Chinese goods starting September 1. The devaluation of the currency can make Chinese goods relatively cheaper to buy with foreign currencies, and make American imports into China more expensive.
According to China’s central bank, the depreciation was “due to the effects of unilateralist and trade-protectionist measures and the expectations for tariffs against China”.
Disney earnings out today
Walt Disney (NYSE: DIS) will publish its fiscal third-quarter earnings after the closing bell today. Analysts expect the entertainment giant to post quarterly earnings at $1.75 per share on revenue of $21.5 billion, according to Refinitiv.
Wynn Resorts (NASDAQ: WYNN), and Hertz Global Holdings (NYSE: HTZ) are also set to report after market closes. Discovery, Inc (NASDAQ: DISCA), US Foods Holding Corp (NYSE: USFD), and Emerson Electric (NYSE: EMR) will report before the bell.
