Traders Unite!

U.S. Stocks Rise Cautiously, Chinese Gaming Stocks Collapse and What Else Is Happening in the Stock Market Today

Chinese gaming stocks have plunged over fears of a crackdown in Macau.

(Paul Yeung/Bloomberg)

September is historically a bad month for stocks, and this is a particularly bad September. Dating back to 1928, the average September return for the S&P 500 has been a loss of 0.99%, and, halfway through the month this year, the index already has fallen more than 1.7%.

Wall Street was poised for a cautious rise on Wednesday after another miserable day of trading Tuesday, with equities in Europe and Asia more mixed as fears of a stock market correction loomed.

Futures for the Dow Jones Industrial Average pointed up around 80 points, after the index tumbled 292 points on Tuesday to close at 34,577. Futures for the S&P 500 and Nasdaq indicated a similarly higher open.

Overseas, Hong Kong’s Hang Seng Index fell 1.8% as Asian investors focused on a sharp slowing in Chinese retail sales. The pan-European Stoxx 600 was down 0.1%, with the spotlight falling on U.K. inflation, which rose to 3.2% in August in the biggest-ever year-over-year leap.

Analysts have noted that investor sentiment is mixed as concerns continued to center on whether a broader market correction is coming.

“Yesterday, the S&P 500 closed -0.32% away from its 50-0day moving average, and the index has only closed below that trailing average on one occasion since March 8 (back on June 18),” noted Jim Reid, a strategist at Deutsche Bank. “Overall we haven’t seen a correction yet, as many expect, but we have seen a stalling.”

In commodity markets, oil prices moved higher, with international benchmark Brent crude futures up 0.9% to above $74.20 a barrel, while West Texas Intermediate crude, the U.S. benchmark, was rising and trading hands at more than $71.10.

Here are 11 stocks on the move Wednesday:

Gambling stocks exposed to Macau—the world’s largest gaming center—have plunged as regulators turned their attention to the sector. Sands China dove 33% and Wynn Macau tumbled 29% in Hong Kong, with their U.S. parents feeling the pressure as well: Las Vegas Sands (ticker: LVS) and Wynn Resorts (WYNN) were both down 7% in U.S. premarket trading.

Softbank fell 6% in Hong Kong as concerns continued over regulatory scrutiny on the Chinese technology sector, including Alibaba (BABA)—to which Softbank is heavily exposed.

Cyber security specialist Darktrace rose 9% in London after posting upbeat quarterly results—its first since going public.

Apple (AAPL), which fell near 1% on Tuesday after its newest iPhones were revealed, was up 0.4% in premarket trading.

The luxury-goods sector remains under pressure for a second day amid concerns over the spread of Covid-19 in Asia—the industry’s most critical market. LVMH fell 2.5% in Paris, Burberry was down 1% in London, Richemont slipped 2.4% in Zurich and Kering declined 3% in Paris.

Comments are closed.