Why Shares of Penn National Gaming, Boyd Gaming, and Red Rock Resorts Gained 9% or More in Early Trading Today
Shares of casino operator Penn National Gaming (NASDAQ: PENN) rocketed nearly 16% in the first half-hour of trading on Wednesday. It was followed by a nearly 12% gain in Boyd Gaming (NYSE: BYD), an 11% jump at Red Rock Resorts (NASDAQ: RRR), and a roughly 9% gain at MGM Resorts International (NYSE: MGM). Clearly, investors were upbeat about gambling stocks as trading got underway.
The big news wasn't directly related to casinos; it was of a medical variety. Moderna, an early leader in developing a coronavirus vaccine, reported positive results in a phase 2 vaccine trial. All of the 45 subjects tested reportedly created antibodies, and there was more than enough evidence to suggest that a larger trial was in order. That trial, with about 30,000 participants, is expected to start in late July. Broadly speaking, investors got excited by the idea that a COVID-19 vaccine might be closer than it seems. Casino stocks went along for the ride.
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Source Fool.com
