Dow Up 91, No Thanks to China: Melco Crown Keeps Plunging

After losing ground in three of its past four sessions, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) bounced back on Tuesday, as eight in 10 sectors advanced. High-flying biotech stocks suffered heavy pullbacks in recent days on fears of increased regulation, but investors' renewed confidence in the industry helped send the broader market higher, and the Dow added 91 points, or 0.6%, to end at 16,367 on Tuesday.

The consumer services sector finished as the worst performing sector of the stock market today, slipping 0.3%. Dow component Home Depot (NYSE: HD  ) lost 0.2%, managing to lose slightly less than its peers, although that's not much to be proud of. Shareholders weren't too ecstatic with (or devastated by) February new home sales data released today. New sales fell from a 468,000 annual rate in January to a 440,000 rate in February -- exactly meeting analyst expectations. When analysts are right, we yawn. When they're wrong, well, prices tend to go bonkers.

Delta Air Lines (NYSE: DAL  ) stock went a little bonkers on Tuesday, adding 3.3%. And if "bonkers" is a 3.3% gain, Delta's 1-, 3-, and 5-year returns are verifiably insane, at 111%, 250%, and 500%, respectively. You put those sorts of returns in padded rooms. The entire airline industry has been soaring in the past year, driven by lower energy costs, ticket price increases, and a recovering economy.

Delta announced a crafty way to differentiate itself and boost revenue earlier today, introducing wi-fi connectivity that will be available to all passengers on 747-400 planes by the middle of this year. But if you want to look at cat videos online 30,000 feet above sea level, it'll cost ya: Plans run from $8/hr to $14/hr, or anywhere from $14.95 to $24.95 for the whole flight, depending on whether you use a mobile device or a laptop.

Macau. Source: Fotopedia.

Lastly, shares of Melco Crown Entertainment Limited (NASDAQ: MPEL  ) weren't such high flyers on Tuesday, slumping 3.2%. According to Nomura Securities, Macau gaming revenue through March 23 is on track for a 10% to 13% increase from 2013, far below the 15% to 20% analysts expected. In less than three weeks Melco Crown's stock has plunged more than 17% as concerns about China's decelerating economic growth hit shares. Keep a close eye on Macau' gambling numbers in the next few months, as popular, high-growth gaming companies like Melco Crown could see an even more rapid sell-off once a clear trend is established.

America's plan to take the crown back drom China
For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to a single, revolutionary technology: 3-D printing. Although this sounds like something out of a science fiction novel, the success of 3D printing is already a foregone conclusion to many manufacturers around the world. The trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2890191, ~/Articles/ArticleHandler.aspx, 11/23/2014 8:50:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement