What the return of China’s high rollers to Macao means for Wynn Resorts

US Top News and Analysis

Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments. 1. U.S. stocks edged lower Thursday morning, with the S & P 500 down 0.3% and the Nasdaq Composite down 0.11%. Overall, equities continued to be held back by soaring bond yields, with that of the 10-year Treasury reaching for 5% — a level last seen in 2007. Investors were looking ahead to a midday speech from Federal Reserve Chair Jerome Powell for any signs about the central bank’s next move on interest rates. Oil prices, meanwhile, pulled back, with West Texas Intermediate crude trading just below $87 a barrel. 2. Las Vegas Sands (LVS) reported earnings Wednesday after the closing bell, exceeding expectations on adjusted property earnings before interest, taxes, depreciation and amortization (EBITDA). The casino operator also announced a $2 billion stock-buyback plan. In gambling hub Macao, China — where Club holding Wynn Resorts (WYNN) also operates — LVS’ EBITDA was up $90 million sequentially, with improved margins. While the Chinese consumer is weak right now, the gaming sector has been a pocket of strength because the high rollers are spending again. Shares of Wynn, which reports third-quarter results on Nov. 8, were up by 1.7% on the news, at $88.20 apiece. 3. Club holding Costco Wholesale (COST) announced Wednesday that longtime CEO Craig Jelinek will step down at the end of the year. He will be replaced by the company’s current president and chief operating officer, Ron Vachris, as part of a longstanding succession plan. Varchis has been at the company for over 40 years, starting as a forklift driver. While it’s sad to see Jelinek go, it doesn’t change a thing about Costco – company that has a deep bench of managerial talent — or our view on the stock, which remains one of the great names in retail. (Jim Cramer’s Charitable Trust is long WYNN, COST. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.