BALY - Travel and leisure stocks jump on debt deal hopes

2023-05-17 13:56:15 ET

Leisure-related stocks broke dramatically higher in Wednesday afternoon trading amid general investor confidence that a debt deal can be worked out before a default scenario. The White House confirmed a report that Biden would cut short his planned trip to Australia and Papua New Guinea and will return to the U.S. on Sunday to oversee more congressional meetings in order to avoid the so-called X-date of June 1.

Consumer discretionary stocks outpaced the broad market with more data reads coming in showing leisure and travel spending trends are holding up. That follows on generally favorable comments on earnings calls on travel and leisure demand.

Airline stocks soared with Mesa Air Group ( MESA ) +11.48% , Hawaiian Holdings ( HA ) +6.25% , Frontier Group ( ULCC ) +6.20% , Allegiant Travel ( ALGT ) +6.09% , and Delta Air Lines ( DAL ) +6.01% seeing the biggest gains in the sector.

Cruise line stocks Carnival ( CCL ) +7.55% , Norwegian Cruise Line Holdings ( NCLH ) +6.54% , Royal Caribbean ( RCL ) +4.44% , and Lindblad Expeditions ( LIND ) 5.33% were in rally mode.

Casino stocks Bally's ( BALY ) +8.38% , Studio City International ( MSC ) +7.82% , Wynn Resorts ( WYNN ) +7.35% , PENN Entertainment ( PENN ) +6.82% , Las Vegas Sands ( LVS ) +3.69% , and Melco Resorts & Entertainment ( MLCO ) +3.46% all broke higher.

Sporting stocks Topgolf Callaway ( MODG ) +3.95% and Escalade ( ESCA ) +2.28% were both up.

Theme park stocks Six Flags Entertainment ( SIX ) +3.71% and SeaWorld Entertainment ( SEAS ) +3.15% were also modestly higher.

Travel service stocks Sabre ( SABR ) +10.20% , Despegar.com ( DESP ) +8.58% , and Expedia ( EXPE ) +3.01% also rose.

Read more about Wednesday's broad market rally

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