MGM - Why Casino Stocks Popped Then Eased Off Today
Shares of casino stocks jumped in early trading today as Wall Street seemed bullish that the COVID-19 economic shutdown might end sooner rather than later. You can see in the chart below that casino stocks jumped as much as 30% as the entire industry moved sharply higher. But as the day wore on, the euphoria wore off, and the gainers were up no more than single digits at the close, which is still welcome for a beaten-down sector.
Source: Google Finance.
The market is trying to figure out when the COVID-19 shutdown of casinos will end and resorts can get back to normal. So, as the news changes every day, the market reacts as well. Monday and early today, the news seemed relatively positive with new confirmed cases of COVID-19 down for the first time, and traders immediately started to think that the worst might soon be over. On Tuesday, the numbers have been a little worse as the day wore on, so some of that optimism evaporated.