Melco Resorts & Entertainment Limited received some encouraging news

On Monday, the Hong Kong based casino operator Melco Resorts & Entertainment Limited (MLCO) received some encouraging news but economic headwinds caused another bad day.
WAN CHAI, Hong Kong - Oct. 13, 2022 - PRLog -- MLCO took a beating on Tuesday, with its stock price falling as much as 12% in early afternoon trade. At the close, it was down 9.2% to $5.52 per share.

The Dow Jones Industrial Average (^DJI) was off 307 points, the NASDAQ Composite (^IXIC) was down 134 points and the S&P 500 (^GSPC) was down 44 points. Despite some potentially favourable news for MLCO, a hospitality industry firm, some less-than-ideal economic data may have sent markets lower.

The Bureau of Labor Statistics issued its monthly Job Opportunities and Labor Turnover Survey (JOLTS) report, which revealed that there were almost 1 million more job openings in July than expected at 11.3 million instead of 10.4 million. This is another inflationary indicator, as more job listings indicate fewer hiring's, which means firms will have to boost wages in order to attract workers.

It comes only days after Fed Chair Jerome Powell declared that the Fed will be proactive in its attempts to control inflation.

That may have clouded some potentially good news that MLCO, a Hong Kong-based hotel and casino operator, got on Monday. The US Public Company Accounting Oversight Board (PCAOB) has reached an agreement with the China Securities Regulatory Commission (CSRC) and the People's Republic of China Ministry of Finance to undertake audits and investigations of firms domiciled in China and Hong Kong. Previously, the PCAOB was unable to undertake those audits, putting certain Chinese equities at risk of delisting from U.S. stock exchanges.

This audit agreement is fantastic news for MLCO since without it, the business may have been delisted from the Nasdaq.

The threat of delisting from the Nasdaq had hung over MLCO stock for much of the year but now that it looks to be nearing resolution, investors may breathe a sigh of relief. However, it is not yet finalized and will not be until the PCAOB has completed the audit.

The firm is still struggling with a travel industry that has not yet recovered from the COVID-19 pandemic but it did receive some encouraging news that its largest market, Macao, witnessed a 43% rise in visitors year over year during the week of Aug. 18-24, indicating that things may be improving. However, considering the current status of the global economy, investors should proceed with caution.

For more latest report in Finance, you may also visit us at Alpha Alliance Capital Limited through our website or contact us via email.

Alpha Alliance Capital PR Manager Tarra Chua
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