MGM - Why Ruth's Hospitality MGM Resorts and Melco Resorts Pulled Back Today
Shares of discretionary stocks , including Ruth's Hospitality (NASDAQ: RUTH) , MGM Resorts International (NYSE: MGM) , and Melco Resorts (NASDAQ: MLCO) were getting hammered today as jitters over another wave of coronavirus infections spooked investors today.
There was no single news item that drove the sell-off in the steakhouse chain and the pair of casino operators. However, rising coronavirus cases in Europe and fears about cold weather seem to be contributing to the sell-off, and hit "recovery stocks" especially hard. Cases in much of Europe, including Spain and France, have been on the rise for weeks, and the U.K. is now considering another national lockdown.
While cases in the U.S. have been relatively flat in recent weeks after a second peak in July, there is a risk of another wave as cold weather drives people indoors, flu season begins, and schools reopen. Additionally, the death of Supreme Court Justice Ruth Bader Ginsburg over the weekend amplified political tensions in the U.S., especially with the presidential election approaching, and may have made another round of stimulus less likely before the election as Congress is likely to be focused on the next nominee for the high court.
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Why Ruth's Hospitality, MGM Resorts, and Melco Resorts Pulled Back Today