Why Resort Stocks Were Plunging This Week
It's been a tough week for much of the market, and resort stocks, which tend to be highly sensitive to macroeconomic conditions, were particularly hard hit. After all, consumer spending on vacations is highly discretionary, and in a recessionary environment, spending in those categories tends to pull back significantly.
Therefore, in a week when investors reacted to the highest inflation reading in 40 years and the Federal Reserve's decision to raise its benchmark interest rate by 75 basis points (its biggest single-step hike since 1994), it's not surprising to see resort stocks like Vail Resorts (NYSE: MTN), Wynn Resorts (NASDAQ: WYNN), and Caesars Entertainment (NASDAQ: CZR) all by down double-digit percentages.
According to data from S&P Global Market Intelligence, as of 1:23 p.m. ET Thursday, Vail Resorts was down 11.2% for the week; Wynn had lost 12%, and Caesars had dropped 17.3%.
Source Fool.com
