The stock market fell sharply last week, and investors are still waiting to see if major market benchmarks hit bottom Friday when they challenged the lowest levels since June. On Monday morning, it appeared that Wall Street was preparing for another leg lower, as the Dow Jones Industrial Average (DJINDICES: ^DJI) , S&P 500 (SNPINDEX: ^GSPC) , and Nasdaq Composite (NASDAQINDEX: ^IXIC) had all fallen another half percent or more as of 8 a.m. ET.
One area of the market that was able to buck the downtrend was the casino stock industry. Gains for Las Vegas Sands (NYSE: LVS) , Wynn Resorts (NASDAQ: WYNN) , and Melco Resorts & Entertainment (NASDAQ: MLCO) came amid news that their core resort market of Macao is poised to reopen more fully from its harsh pandemic-related restrictions. Yet even as casino stocks jumped, the bigger question remains whether would-be patrons will be in good enough financial condition to release their pent-up demand at the slots and gambling tables.
The key news came from local Macao public officials, who eased some of the limitations they had imposed since early 2020 when the pandemic first started. Under the restrictions, visitors in tour groups from China's mainland had to go through a long and involved process in order to receive the documents necessary to visit the Asian entertainment mecca. Under a phased-in approach that will start in November, Macao will allow Chinese tour visitors from five coastal provinces, including Shanghai, to enter Macao without going through that process.
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Casino Stocks Bet on Macao, but Will Gamblers Return?