Stock futures are a leg lower this morning ahead of the market open.
Near 7:40 a.m. ET, Dow futures were down 107 points, S&P 500 futures were off 12 points, and Nasdaq futures were down 12 points. During the trading session on Monday, the Dow gained as many as 250 points and finished higher to sidestep an eight-day losing streak, which would have been its worst in four years.
The big markets news overnight came from China, where the central bank devalued its currency. The People’s Bank of China fixed the yuan midpoint at 6.2298 against the dollar and weakened it 1.85% below yesterday’s closing level. It’s part of an effort to make exports more competitive.
The dollar strengthened against the yuan to the highest level in nearly three years.
The other big news this morning, announced after the closing bell yesterday, is Google’s big restructuring. The tech giant is going to be subsumed under a new parent company called Alphabet. The ‘core’ Google products like Android and YouTube will be part of Google, while other products including Google Capital and Nest will be managed by Alphabet.
Several analysts say this will bring greater transparency to the company, since it will report detailed revenues on the core products.
Google shares were up nearly 6% in premarket trading.
In economic data, the July survey from the National Federation of Independent Business showed that wages are on the rise. Nearly a quarter (23%) of all companies surveyed reported raising compensation, up from 21% in June.