Casino stocks rise as Macua gambling revenue decline slows
Shares of U.S. casino operators rose Monday as monthly Macau gambling revenues fall less than feared.
Macau, the world’s biggest casino hub, posted a 9.5 percent drop for April, its 23rd straight monthly decline. But it was less severe than analysts’ estimates of an 11 percent to 16 percent fall.
April revenue fell to $2.17 billion, government data showed Sunday.
MGM Resorts International was up 37 cents, or 1.74 percent, to $21.67. Las Vegas Sands Corp., which saw a 13 percent decline after disappointing first-quarter results, gained $1.60, or 3.54 percent, to close at 46.75. Wynn Resorts Ltd. gained $5.98, or 6.77 percent, to close at $94.28.
All U.S. stock indexes moved notably higher Monday, recovering some of last week’s sharp declines. Beaten-up stocks such as Amazon.com and Microsoft gained, helping end a seven-day losing streak in the Nasdaq composite.
The Dow Jones industrial average rose 117.52 points, or 0.7 percent, to 17,891.16. The Standard & Poor’s 500 index added 16.13 points, or 0.8 percent, to 2,081.43 and the Nasdaq rose 42.24 points, or 0.9 percent, to 4,817.59.
Casino operator stocks have generally rallied this year as Macau bearishness fades. And the pace of the decline was seen decreasing from the previous month as the southern Chinese territory struggles to lure high-spending gamblers.
China’s pervasive campaign against conspicuous spending among public officials together with slowing economic growth are widely regarded as the central reasons behind the slump.
Most Hong Kong-listed casino operators are still in the red on a one-year basis. But a bounce since mid-February has erased a sizable chunk of those losses.
The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.
