China represented a major theme in Monday’s midday trading. A potential COVID breakout in China put pressure on Macau gambling stocks, with Wynn Resorts (WYNN), Las Vegas Sands (LVS) and Melco Resorts & Entertainment (MLCO) all falling.
Meanwhile, U.S. regulatory scrutiny sparked selling among China-based educational stocks. This included drops in New Oriental Education & Technology (EDU) and TAL Education Group (TAL).
The list of notable midday decliners also included Axonics (AXNX). Shares dropped following an analyst downgrade.
Turning to the upside, Immatics (NASDAQ:IMTX) posted notable gains in intraday action, boosted by clinical trial data related to a potential cancer treatment.
Decliners
Renewed COVID worries in China put pressure on gambling stocks with heavy exposure to Macau. This came after five confirmed cases were reported in Zhuhai over the weekend — the first potential breakout in the city since July.
Hurt by the news, Wynn Resorts (WYNN) was among the worst performers in the group, sliding by almost 12% in midday trading. Las Vegas Sands (LVS) plunged almost 9%, while Melco Resorts & Entertainment (MLCO) declined around 7%.
Monday’s intraday trading also included notable declines in China-based education companies. This came after New Oriental Education & Technology (EDU) suffered a regulatory setback in the U.S., with authorities putting the company on a watchlist that could lead to eventual delisting if the firm doesn’t live up to certain auditing requirements.
EDU fell by nearly 9% in intraday action. Fellow Chinese education firm TAL Education Group (TAL) saw an even sharper decline, falling by almost 19%.
In other news, Axonics (AXNX) lost ground following a downgrade from Needham. Analyst Mike Matson cut his rating on the provider of a treatment for urinary and bowel dysfunction to Hold from Buy.
In making the downgrade, Matson pointed to a less favorable risk/reward profile based on a survey Needham conducted with urologists. Shares fell nearly 5% in intraday action.
Gainer
Immatics (IMTX) showed strength in midday trading after the company revealed upbeat clinical trial data. The firm released interim data of a Phase 1 study of its IMA203 as a potential cancer treatment.
IMTX surged 11% in intraday action.
For more on the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.
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