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 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 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 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.
Lastly, shares of Melco Crown Entertainment Limited 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.
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The article Dow Up 91, No Thanks to China: Melco Crown Keeps Plunging originally appeared on Fool.com.John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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