Gaming stocks rally

July 02, 2002 9:11 AM
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Gaming stocks gained 1.8% during the week, once again outperforming both the S&P 500 (+0.1%) and the Russell 2000 (+0.3%) in another tumultuous week in the market.

Overall, the BSC Large-Cap index declined 3.3%, while the BSC Small-Cap index was up a solid 8.2%. Investment analysts Bear Stearns believes that many of the gaming small caps rallied after a weekend compromise by the Indiana legislative which, while raising gaming taxes, will allow operators to operate dockside ending fears of a more onerous tax increase (like that recently passed in Illinois). Meanwhile, the equipment operators fell 3.4% during the week.

Despite several volatile trading days last week, the ­­major indices remained relatively unchanged at the end of the week. With the Dow down 0.1% and the Nasdaq up 1.5%. ­­Lodging stocks lost ground as a group (down 2.3%) as a result of losses by small caps (down 4.1%) and large caps (down 3.5%).