Shares of gambling industry supplier Everi Holdings (NYSE:EVRI) jumped as much as 18.9% in trading Wednesday as investors grew hopeful the gambling industry will return to normal soon. At the close of the market, shares were up 13.5% on the day.
The market and stocks related to travel and leisure were climbing today because yesterday Moderna announced positive results on phase 1 of its COVID-19 vaccine trial. The vaccine will move to a phase 3 trial on July 27.
Investors in stocks related to gambling are excited about the vaccine because it could pave the way for a recovery of the businesses. Most casinos were shut down in April and May, and visitation has been very light so far this summer. But vaccines in 2020 could lead to a return to normal sometime as early as 2021.
There's no question the move today is speculative, but that's what we've come to expect in today's market. Investors are looking for any positive sign they can that the economy and travel will return to normal with vaccines that may be coming in 2021. While yesterday's news was an incremental positive for gambling suppliers like Everi, there's a long road to recovery for the industry, so expect some volatility along the way.