Stock Market Today: Dow Is Under Pressure, China Gaming Stocks Dive, Oil Higher

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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 mixed day on Wednesday after another miserable day of trading Tuesday. Equities in Europe and Asia were mixed as well amid fear of a stock-market correction.

Rising Covid-19 cases around the globe are denting sales for many companies. Weak economic data from August aren’t helping stocks either.

Futures for the

Dow Jones Industrial Average

pointed down 21 points after the index tumbled 292 points on Tuesday to close at 34,577. Futures for the

S&P 500

and

Nasdaq

were both up 0.1%.

Overseas, Hong Kong’s

Hang Seng Index

fell 1.8% as Asian investors focused on a sharp slowing in Chinese retail sales. The consensus expectation was for August retail sales to grow 7% year over year, but the reading came in at just 2.5%. Industrial production rose 5.3%, below expectations for 5.8%.

The poor data “weighed on risk assets overnight,” wrote Tom Essaye, founder of Sevens Report Research.

The pan-European

Stoxx 600

was down 0.4%, with the spotlight falling on U.K. inflation, which rose to 3.2% in August in the biggest-ever yearly leap.

Analysts have noted that investor sentiment more broadly 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.”

On Monday, Reid and his team published a monthly survey of more than 550 global finance professionals showing that 58% expect an equity correction of between 5% and 10% before the end of the year. Another 10% saw a market correction of more than 10% ahead.

In commodity markets, oil prices moved higher, continuing a rally. Futures for international benchmark Brent crude were up 1.3%, trading hands above $74.50 a barrel. U.S. oil futures rose similarly, with West Texas Intermediate trading above $71.40.

In the day ahead, U.S. economic data for markets to digest includes industrial production figures for August and New York’s Empire State manufacturing index for September.

Here are 15 stocks on the move Wednesday:

Gambling stocks exposed to Macau—the world’s largest gaming center—have plunged as Chinese 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 5% 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 10% in London after posting upbeat quarterly results—its first since going public. The company raised forecasts for both revenue growth and profit margins next year.

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 3.3% in Paris,

Burberry

was down 2.4% in London,

Richemont

slipped 2.7% in Zurich and

Kering

declined 3.9% in Paris.

Yum China Holdings

(YUMC) stock fell 4.4% after the company said its operating profit for the third quarter may fall 50% to 60% year over year, as Covid-19 outbreaks in China hit sales. 

Regeneron Pharmaceuticals

(REGN) stock gained 2.2% after the company said it is selling an additional 1.4 million doses of its monoclonal antibody treatment for Covid-19 to the U.S. government.

Sage Therapeutics

(SAGE) rose 3.3% after the Food and Drug Administration gave the company a fast-track designation for its Huntington’s Disease treatment.

Microsoft

(MSFT) stock gained 1.2% following news that the company is raising its dividend. 

Werner Enterprises

(WERN) stock gained 1.7% after getting upgraded to Outperform from Market Perform at Cowen. 

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