Why Was Wynn Resorts Stock Down 7% Today?

Wynn Resorts Ltd WYNN shares fell on Tuesday after Chinese cities reimposed COVID-19 lockdowns amid a spike in cases over its national holiday.

What To Know: According to a Reuters report, China reported 422 million tourist trips over its week-long national holiday, which was down 18.2% year-over-year. 

12 positive COVID-19 omicron variant cases were reported last week, which sparked fresh lockdowns in Xishuangbanna, a city in China's Yunnan province. Several districts even prevented tourists from leaving following the outbreak.

The report indicates that the region has ordered three rounds of testing and will be delivering emergency food supplies to tourists unable to leave their hotels. Urumqi, the capital of the far northwestern region of Xinjiang, suspended outbound travel beginning on Oct. 4.

A separate report from Bloomberg indicates that the Chinese Communist Party’s flagship newspaper endorsed the country’s Covid Zero policy for the second day in a row on Tuesday.

The People’s Daily reportedly called Covid Zero "sustainable" and said China must stick to its strategy because it’s key to stabilizing the economy.

"Only when the epidemic is under control can the economy be stable, people’s lives be peaceful, and economic and social development be stable and healthy,” Tuesday’s commentary in the People’s Daily reportedly said.

See Also: Apple Supplier TSMC And Other Chip Suppliers' Stocks Plunge After US Curbs On China

WYNN Price Action: Wynn Resorts has a 52-week high of $96.50 and a 52-week low of $50.20.

The stock closed Tuesday down 7.02% at $59.64, according to Benzinga Pro.

Photo: Jay George from Pixabay.