MGM - Why Casino Stocks Bounced Back Today
After cratering on Thursday, many casino stocks bounced back on Friday. MGM Resorts (NYSE: MGM) was as much as 10.3% higher before closing up 7.5% for the day. Eldorado Resorts' (NASDAQ: ERI) shares gained 13% at their peak and closed up 10.6%. Shares of Penn National (NASDAQ: PENN) climbed 9.8% and closed up 6.4% for the day. The gains easily outpaced the stock market gains of 1.3% for the S&P 500 and 1.9% for the Dow Jones Industrial Average.
Thursday's drop was in large part due to the fact that COVID-19 cases have begun rising as some states have started to reopen, and the market feared that would lead to a slower-than-expected economic recovery and potentially the shutdown of some states again. For casinos, if people fear for their health in places with a lot of people, it would be logical to see traffic down for the foreseeable future.
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