Wynn, Las Vegas Sands, JD.com stocks fall on China’s rising COVID cases

An uptick in COVID cases in China is pushing down shares of Wynn, Las Vegas Sands, and JD.com.

Video transcript

- All right. I'm playing a number of stocks from China's biggest retailer, JD.com, to Las Vegas Sands, and Wynn as well, both of whom have exposure, of course, in Macau. China enduring its largest COVID outbreak since April. Beijing reporting its first COVID deaths in nearly six months. This comes just as optimism was rising that Chinese officials would begin to relax the COVID lockdowns that have crippled their economy, snarled supply chains around the globe.

China reported more than 26,000 new cases on Sunday, the region of Guangzhou seeing more than 80,000 cases since October 22. And you're seeing that play out in these stocks. JD.com down, let's see, about 6%. Las Vegas Sands down 3 and 1/2%. MGM down 3%. A ETF, K Webb, full of Chinese internet stocks, down about 3 and 1/2%.

Pretty much all of them seeing that same-- and you know, Rachelle, we've talked about this repeatedly. Fool me once, fool me twice. This reopening is not going to happen anytime soon. Xi will stick with COVID zero, unconcerned about the economic impact.

- I mean, I'd guess that we've spoken to have said he's going to put the health of people in China first, even if it's hurting the economy, as we've seen. And even moves by the bank in China trying to really still prop up the economy when there was issues with the property sector. But as long as you have that COVID zero policy in place, it's very hard to sort of pin anything on it.

Every time there's a reopening, people get excited. We see the stock prices go up. And then soon enough, as cases start to climb up and the lockdowns continue, right back to where we started. So people should really take a very slow and steady approach to this. Clearly, not out of the woods any time soon.

- And we talked about that when we saw that initial reaction on the reports, just the fact that this could be reversed or they could clearly not follow through with the plans that have been laid out. And that certainly seems to be the case, at least for now.

So I think we're going to see kind of this volatility in so many of these names that have large exposure to Macau or these Chinese US-listed stocks here just as people try to figure out what that policy is going to look like not necessarily now, but 6 months from now and 12 months from now. And I think as we've been reporting, it's just too hard to try to pinpoint that, at least at this point.