Here’s Why Casino Stocks Are Getting Hacked Up Now
Among the market’s worst performers at halftime today are casino stocks, with the stumble lead by gaming giant MGM Resorts (NYSE:MGM), down -5.75%. The sell-off on casino stocks is somewhat perplexing, as the sector has been the recipient of good news on several fronts today. Earlier today Standard and Poor’s (NYSE:MHP) upped its credit rating on gaming leader Wynn Resorts (NASDAQ:WYNN), bumping its rating on the company’s bonds to BB+, the “brink of investment-grade status.” S&P further noted that the ratings “had a positive outlook, reflecting the potential for a further upgrade once the firm has clarity around the timeline, budget, and funding strategy for the Cotai [Macau] development.” Also a positive note for casino companies this morning was a report from the Nevada Gaming Control Board, which said that in-state gaming revenues jumped 16% in May to a total $984 billion, with a 29% boost coming from more gambling on the Las Vegas Strip (which accounted for more than half of the monthly revenues).
Here’s a look at casino stocks taking heat today, which are virtually all of them:
Las Vegas Sands (NYSE:LVS) down -4.04%, Melco Crown Entertainment (NASDAQ:MPEL) down -2.29%, Boyd Gaming Corporation (NYSE:BYD) down -3.11%, Wynn Resorts Ltd. (NASDAQ:WYNN) down -2.69%, Pinnacle Entertainment (NYSE:PNK) down -1.19%, Ameristar Casinos Inc. (NASDAQ:ASCA) down -.83%, Century Casinos Inc. (NASDAQ:CNTY) down -1.85%, and Monarchy Casino & Resorts (NASDAQ:MCRI) down -2.91%.