Leading Commodity And Casino Stocks Are Now Related
The leading commodity stocks are surging higher at the start of the trading session. The catalyst for the rally in the commodity names is the strong move higher in the Asian stock markets. Last night, there was a report that stated manufacturing conditions in China climbed to a five-month high in October. This report is having some effect on the leading commodity stocks this morning. Stocks such as Rio Tinto Plc (NYSE:RIO), BHP Billiton Ltd (NYSE:BHP), Freeport McMoRan Copper & Gold Inc (NYSE:FCX), and Cliffs Natural Resources Inc (NYSE:CLF) are all trading sharply higher. China is considered the growth engine of the world, when China signals growth the leading commodity stocks will often react positive.
Other stocks that will also benefit from positive Chinese news will be the leading casino stocks. Wynn Resorts Ltd (NASDAQ:WYNN), Las Vegas Sands Corp (NYSE:LVS), and MGM Resorts International (NYSE:MGM) are all trading higher at the start of the day. The leading casino stocks are making the bulk of their profits from Macau, China. Therefore, these stocks are now behaving much like commodity stocks and are trading higher when China issues strong economic data.