Weak Trade Data From China Has Investors Worried -- and Wynn Resorts Stock Falling
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Weak trade data from China renewed investor worries about slowing global economies, sending share prices down for the day.
Both imports and exports in China declined in December year over year while the country's trade surplus with the U.S. expanded. The sluggish data from the world's second biggest economy dragged down the price of West Texas crude oil by nearly two percent and hurt sentiment in the stock market.
The Dow and S&P 500 indexes were off 0.36 percent and 0.53 percent respectively, and the Nasdaq Composite index fell 0.94 percent. The Entrepreneur Index™ was also down 0.94 percent on the day.
Wynn Resorts had the biggest decline on the Entrepreneur Index™, falling 4.76 percent. The company's stock is hyper-sensitive to economic data from China because it operates three casinos in the former Portuguese colony of Macau. Wynn shares have fallen 46 percent since last May.
Liquor-maker Brown Forman Corp. (-2.84 percent), which has broad sales exposure to overseas markets, was also down sharply.
Tesla shares fell 3.71 percent today as competitors Ford Motor Co. General Motors and Nissan revealed their plans to invest in electric vehicles at the Detroit auto show. Ford Chairman Bill Ford said the company would spend $11 billion by 2022 on as many as 40 hybrid and all-electric models.
Ford had the largest gain on the index today, rising 1.93 percent. The company is expected to announce details of a broad alliance with German carmaker Volkswagen AG sometime this week. Ford's stock fell more than 20 percent in December but has been on a roll so far this year. It has not cracked the $10 level since last August.
Technology stocks were mixed, with more companies down than up. Chipmaker Analog Devices had the biggest decline, falling 2.84 percent. Three of the four FANG stocks were down on the day, with Amazon.com, (-1.42 percent), posting the sharpest decline. Facebook was up 1.11 percent, the biggest gain in the sector.
Retailer Bed Bath & Beyond failed to post the biggest gain on the index for the third consecutive trading session, but it was up 0.72 percent. Other gains on the day included Jefferies Financial Group, (1.1 percent), NVIDIA Corp. (1.08 percent) and Ralph Lauren Corp. (1.19 percent).
Earnings season gets under way this week, and it could be a bumpy ride for investors. Investment bank Goldman Sachs issued a report suggesting that based on the market prices of stock options, the volatility of share prices on earnings announcements could be as high as it's been since the financial crisis.
Let's hope it's the good kind of volatility.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.