Sell MGM Stock, Because the Recovery for Las Vegas Will Be Slower, Analyst Says

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MGM’s Bellagio Hotel and Casino in Las Vegas.


Roger Kisby/Bloomberg


MGM Resorts

shares were lower on Monday following a downgrade from Goldman Sachs, which warns that bulls are making a bad bet when it comes to the casino operator.

Analyst Stephen Grambling cut his rating on MGM (ticker MGM) to Sell from Hold, although he raised his price target by $3, to $20, to account for his updated estimates across the gaming sector. He is concerned about a slower recovery for Las Vegas, “which will drive downside to consensus estimates and fundamental underperformance relative to peers” and likely weigh on the stock’s multiple.

MGM stock is down nearly 32% year to date, but the shares have rallied some 44% since the beginning of last month, ahead of peers and the

S&P 500.

Grambling calls the rally unwarranted, give that MGM has lower exposure to regional gambling hubs—which have

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Euro Zone Recovery Lost Momentum in August as Economies Diverge | Investing News

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LONDON (Reuters) – The euro zone’s rebound from its deepest economic downturn on record faltered in August, surveys showed on Thursday, with some countries in the bloc suffering more than others from restrictions imposed to limit the spread of the coronavirus.

Overall growth in the dominant service industry – which has been harder hit than manufacturing from lockdown measures – almost ground to a halt, suggesting the long road to recovery will be bumpy.

Last quarter the bloc’s economy contracted 12.1% as lockdowns led to businesses being shuttered and citizens staying home, official data showed.

A Reuters poll last month predicted a bounceback this quarter with growth of 8.1% but said a full recovery would take two years or more. [ECILT/EU]

But as infection numbers have risen some restrictions have been re-imposed, and IHS Markit’s final Composite Purchasing Managers’ Index, seen as a good gauge of economic health, suggested the

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U.S. weekly jobless claims below one million; but labor market recovery ebbing

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WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits fell below 1 million last week for the second time since the COVID-19 pandemic started in the United States, but that does not signal a strong recovery in the labor market.

The drop in initial claims to a five-month low reported by the Labor Department on Thursday largely reflected a change in the methodology it used to address seasonal fluctuations in the data, which economists complained had become less reliable because of the economic shock caused by the coronavirus crisis.

There are growing signs the labor market recovery from the depths of the pandemic in mid-March through April is faltering, with financial support from the government virtually depleted.

“There are new seasonal adjustment factors this week which brings down the joblessness slightly,” said Chris Rupkey, chief economist at MUFG in New York. “The labor market looks just

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Economic recovery stalls as consumers signal caution

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NEW YORK (AP) — The U.S. economy’s economic engine may be running out of fuel.

Consumer spending accounts for about 70% of the U.S. gross domestic product, making it the single most important factor in recovering from one of the worst recessions on record.

Spending plunged an unprecedented 12.9% in April, as stores and restaurants across the country closed and consumers sheltered at home.

The federal government’s $2.2 trillion aid package, including $1,200 direct payments to households and an additional $600 in weekly unemployment benefits, spurred the start of a spending rebound in May. But as autumn approached with no sign of an end to the pandemic and further aid tied up in Congress, consumers appeared to be retreating once more.

Analysts and economists are concerned that consumers will fall back and hunker down once again without any additional money from the government. The last round of direct aid and

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Emirates optimistic on network recovery by summer 2021; operates one-off A380 flight to PH’s Clark airport

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MANILA, Philippines, Sept. 3, 2020 /PRNewswire/ — International airline Emirates indicated optimism that it will be able to operate 100 percent of its network of destinations by summer of next year, returning to serving more than 140 cities, and gradually putting its Airbus A380 fleet back into service on routes with high demand.

Photo credit: BCDA
Photo credit: BCDA

Emirates has deployed its flagship A380 aircraft to London, Cairo, Paris, Guangzhou, and Toronto, and recently increased to a second daily service to London, operated with an A380, to meet demand. The UAE carrier also operated a one-off A380 commercial flight to Clark International Airport on August 19, becoming the first scheduled commercial flight, utilizing the iconic aircraft, to operate to the Luzon-based airport.

Carrying 405 passengers from Dubai that include overseas Filipino workers, the one-off A380 to Clark was heartily welcomed complete with a ceremonial

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Pre-COVID Data About US Entrepreneurs Offers Promise for Economic Recovery

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WELLESLEY, Mass., Sept. 2, 2020 /PRNewswire/ — In the United States, total entrepreneurial activity (TEA) increased to 17.4% in 2019, a 10% increase over 2018 and the highest level reported in the Global Entrepreneurship Monitor’s 21-year history. Additionally, established business activity in 2019 was up by more than one-third of the prior year’s level to 10.6%, also the highest level ever reported in the United States by GEM. These are among the findings of the 2019/2020 U.S. Global Entrepreneurship Monitor Report, produced by Babson College and released today.” data-reactid=”13″WELLESLEY, Mass., Sept. 2, 2020 /PRNewswire/ — In the United States, total entrepreneurial activity (TEA) increased to 17.4% in 2019, a 10% increase over 2018 and the highest level reported in the Global

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Recession recovery: Personal tax cuts central to Treasurer Josh Frydenberg’s economic plan

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Australians will likely receive fast-tracked personal tax cuts as the nation’s treasurer plots a path out of recession.

Josh Frydenberg is stitching together a federal budget in the face of a whopping seven per cent collapse in economic activity.

More than one million people are unemployed and another 400,000 could join the dole queue before Christmas.

Mr Frydenberg is planning to speed up income tax relief in the October budget to breathe life into the battered economy.

“If you put more money into people’s pockets there will be more spending and more spending will create jobs,” he told the Nine Network on Thursday.

But national accounts figures released this week show people are unable or unwilling to spend money during the coronavirus pandemic and are instead saving as much as they can.

The treasurer believes easing social and business restrictions will give people the confidence to open their wallets.

“As

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UPDATE 2-UK shares up for first time in 4 days on signs of economic recovery

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(For a live blog on European stocks, type LIVE/ in an Eikon news window)

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* UK homebuilders surge as house prices hit record high

* Barratt up, sees higher 2021 home completions

* Media, beverage firms, personal goods stocks lead gains

* FTSE 100 up 1.3%, FTSE 250 up 0.5% (Updates prices throughout, adds comments)

By Shashank Nayar and Shreyashi Sanyal

Sept 2 (Reuters) – London-listed shares rose for the first time in four sessions on Wednesday as a surge in house prices to record highs powered stocks of homebuilders, with Barratt jumping to the top of the FTSE 100.

The blue-chip index and the mid-cap FTSE 250 climbed 1.3% and 0.5%, respectively, with homebuilders marking their best day in nearly two months as data showed house prices jumped 2% in August, the biggest month-on-month increase since 2004.

Britain’s top homebuilder, Barratt Developments Plc jumped 8.6% as it

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Oil prices fall, with a weekly drop in U.S. crude supplies offset by a post-hurricane recovery in Gulf output

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Oil futures declined on Wednesday, failing to find support from a hefty weekly drop in U.S. crude supplies and production as output in the Gulf of Mexico has seen a strong recovery from Hurricane Laura.

The supply declines from the Energy Information Administration were “not surprising,” as Hurricane Laura caused a “bigger draw than what was forecasted in crude and gasoline” supplies, Tariq Zahir, managing member at Tyche Capital Advisors, told MarketWatch.

The EIA reported Wednesday that U.S. crude inventories fell by 9.4 million barrels for the week ended Aug. 28, marking a sixth weekly decline in a row.

That compared with an average forecast by analysts polled by S&P Global Platts for a fall of 1.2 million barrels. The American Petroleum Institute on Tuesday reported a drop of 6.4 million barrel. The EIA data also showed crude stocks at the Cushing, Okla., storage hub edged up by about 100,000

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XRP/USD recovery from $0.26 remains consistent, is $0.30 achievable?

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  • Ripple renews the bullish trend after testing support at $0.26.
  • The path of least resistance is upwards as highlighted by the RSI and the MACD.

Ripple embarked on an upward roll after plunging further under $0.30 to test support at $0.26. The third-largest cryptocurrency by market capitalization has on multiple occasions in August been purged from highs above $0.30. A monthly high traded at $0.32 marked the end of the bullish action towards $0.40 and paved the way for losses under $0.30.

Following the support at $0.26, XRP commenced an intriguing recovery towards $0.30. The initial break above the descending trendline boosted the price farther up. XRP/USD hit highs above $0.28 before stalling just before the 100 SMA in the 4-hour range. Glancing upwards, more hurdles are envisaged at $0.29 and of course, the psychological resistance at $0.30.

For now, the trend remains in the hands of the bulls supported

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