Big win for NJ and the states. Today, the Supreme Court ruled that individual states can legalize or prohibit sports betting, striking down a 1992 Federal Law that prohibited most of states from allowing sports betting. Investors are betting on casino stocks with exposure outside of Nevada: Penn National Gaming (PENN), Boyd Gaming (BYD), Caesars Entertainment (CZR) and MGM Resorts (MGM).
Gambling related stocks are seeing their odds rise as well:
-Churchill Downs (CHDN) - a horse racing, gaming and online entertainment company
-Scientific Games (SGMS) - develops products and services for the gaming, lottery and interactive gaming industries (we took profits on our swing service today)
- International Game Technology (IGT) - operates and provides technology products and services for the lottery, electronic gaming, sports betting and interactive gaming markets worldwide
-The Star Group (TSG) - provides technology-based products and services to the gaming and interactive entertainment industries and owns and operates gaming and related interactive entertainment businesses
TSG is leading the race so far, as the company is up 12.26%, SGMS is a close second, up 13.31% and CHDN is bringing up the rear, up 5.53%.
The above news has given the Gaming Etf, BJK, the leadership role in today’s trading. BJK is up 1.93% followed by the PHLX Semiconductor Index, ~SOX, which is up 1.67%. Utilities and financials are today's laggards. The Utilities Fund, XLU, is down 0.75% and the Financial ETF, IYF, is down 0.15%.
The major indices are all in the green, but the Russell 2000 is in the red. The key number on the Dow Jones Industrial Average if 24,946. We would like to see this cleared on closing basis. After that, there is not lot of resistance to 25,300.
Signals that trade concerns may be lifting are helping propel the Dow higher. According to the WSJ, the U.S. and China are close to reaching a trade agreement on agriculture products that will relax tariffs on those goods.
President Trump tweeted Sunday that it "will all work out" on U.S.-China trade. He also tweeted that he wants to help China's ZTE "get back into business, fast” less than a month after the U.S. banned domestic companies from selling components to the telecom gear giant. Rumors that Chinese regulators have resumed their review of Qualcomm's (QCOM) pending acquisition of NXP (NXPI) has NXPI trading up 14.21%.
Let’s see if the Dow can finish in the green for a 7th consecutive day. We are staying on the sidelines for the remainder of the session.
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