Casino stocks took a hit after the government announcement that Macau will cap the number of Mainland visitors to 21 million, with Wynn faring the worst.
Wynn Resorts Limited finished Tuesday’s session as the worst performer on the S&P 500 Composite index, falling 6.13 or 4.59 percent to 127.47. Wynn has been downgraded by several analysts following a 32 percent decline in quarterly revenue and amid construction delays on its Wynn Palace.
Shares in Las Vegas Sands Corp plunged 2.25 or 3.88 percent to 55.80, while shares in MGM Resorts International fell 0.24 or 1.09 percent to 21.76.
Morgan Stanley Research said in a recent note that Wynn Macau could outperform Sands China and SJM Holdings in the near term if the change in QoQ EBITDA were to move with the stock price, but sees overseas stocks as more attractive.