Travel and tourism stocks rose on Monday even though the number of COVID-19 cases over the weekend rose, as investors bet on states continuing to reopen their economies despite the spike.
There was no company-specific news on any of these stocks today, although Eldorado did receive Federal Trade Commission clearance on Friday for its merger with Caesars Entertainment (CZR). Instead, the stocks rose on hopes for the broader macroeconomic climate.
Las Vegas casinos reopened their doors earlier this month, and they will require patrons to wear masks while on premises. MGM Resorts reportedly received guidance from Nevada that performers must wear masks, too, even while performing, though they may be briefly pulled down to sing.
They'll be willing to go along with the protocols because their businesses have been especially harmed by the pandemic. Casinos were among the first businesses ordered closed to help thwart the spread of the coronavirus.
It's likely that travel and tourism stocks will continue to swing wildly because they have been so sensitive to the crisis. Continued increases in COVID-19 cases could lead to new crackdowns, something that's already happening in some states. Texas, for instance, rolled back its reopening, and others may delay their restart.