Gaming stocks rebound; MGM Resorts shares close down
Casino giant MGM Resorts International was the only major gaming company whose stock price failed to rebound Tuesday as markets bounced back after Monday's 634-point plunge.
The casino operator reported positive second-quarter earnings Monday after the markets closed, but several analysts remained unconvinced the company, which controls 10 Strip resorts, is on the mend.
"It is too early to ascertain the impact of the recent equity market sell-off and U.S. debt downgrade on the broader economy," Credit Suisse gaming analyst Joel Simkins told investors. "With that said, we can't imagine it is good news for discretionary spending. We aren't convinced at this point that recently improving trends will continue."
Shares of MGM Resorts were off 36 cents, or 3.12 percent, Tuesday and the company closed at $11.18 on the New York Stock Exchange.
The rest of the gaming sector Tuesday made moderate to large gains as the Dow Jones Industrials ended up nearly 430 points.
Wynn Resorts Ltd., saw its shares jump $12.77, or 10.06 percent, on the Nasdaq National Market to close at $139.68; it was the largest price increase of any gaming company. Las Vegas Sands Corp., was up $2.67, or 7.15 percent, to close at $40, and Penn National Gaming increased $1.14, or 3.3 percent, to close at $35.71. Boyd Gaming closed up 12 cents, or 1.98 percent, at $6.19.
The stock prices for gambling equipment makers recorded significant price gains. Shares of International Game Technology, Bally Technologies and WMS Industries were all up more than $1 Tuesday.
Utilities with a local presence also fared well in Tuesday's rally.
Reno-based NV Energy gained 55 cents, or 4.41 percent to $13.03. Southwest Gas Corp. gained $3.39 or 10.51 percent to close at $35.63.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
