Why MGM Resorts Stock Just Bounced 5%

Casino operator MGM Resorts (NYSE: MGM) saw its stock tank 6% yesterday after it and other Las Vegas casinos began issuing federal Worker Adjustment and Retraining Notification (WARN) Act notifications to staff, previously furloughed, that they might not be called back to work by August 31. Now, those same shares are headed in the opposite direction, and MGM stock is up 5.4% in afternoon, 2:40 p.m. EDT trading.

MGM had "WARNed" employees yesterday that, with the coronavirus pandemic still in full swing, it will not be "safe to restart shows prior to August 31, 2020." Accordingly, the company is planning to lay off a "large majority" of employees in its entertainment and sports division.

Or...maybe not. Last night, investors also received news that in Congress, Senate Republicans are finally moving forward with a new economic stimulus bill dubbed the Health, Economic Assistance, Liability Protection and Schools or HEALS Act, an alternative to the Health and Economic Recovery Omnibus Emergency Solutions Act or HEROES Act that House Democrats passed in May.

Source Fool.com