What happened

Shares of Wynn Resorts (NASDAQ:WYNN) were moving higher last month, as the stock climbed in sympathy with progress in trade talks between China and the U.S. About three-quarters of the company's revenue came from China last year, in the special gaming region of Macao, so Wynn has significant exposure to the Chinese market. Since gaming is a discretionary activity, its performance in Macao could be crushed if the Chinese economy continues to slow.

According to data from S&P Global Market Intelligence, shares of the casino operator rose 12% in October. As you can see from the chart below, the stock started gaining on Oct. 8 as news of positive developments in the trade talks began to come in.

WYNN Chart

WYNN data by YCharts.

So what

Wynn's biggest day of the month came on Oct. 11, when the stock jumped 6.3% after President Trump said that the U.S. had reached "a very substantial phase one deal," according to CNBC. That news sent stocks like Wynn -- which are sensitive to trade tensions with China -- soaring as a trade deal should offer China some relief from economic woes. The details of the agreement pertained to intellectual property, agricultural exports, and tariffs, among other issues.

Playing cards fanned out to show a royal flush in spades, and casino chips on a gaming table.

Image source: Getty Images.

Later in the month, Wynn rose alongside rival Las Vegas Sands, which also has significant exposure to China, after Las Vegas Sands moved higher on its own earnings report.

Now what

Wynn has continued to post gains into November in anticipation of the company's third-quarter earnings report, due out after-hours on Nov. 6. Analysts are expecting revenue to slip 2.2% to $1.67 billion and for earnings per share to fall from $1.68 to $0.90. Keep an eye on developments in the China trade talks, as that situation is fluid and could move Wynn stock again.

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