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Casino Stocks React in Wake of Las Vegas Mass Shooting

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Late Sunday evening, the Route 91 Harvest Music Festival was going strong, with country artist Jason Aldean headlining for a crowd of about 22,000 concertgoers. But all of a sudden, bullets began raining down, and chaos ensued: a lone gunman, situated on the 32nd floor of the Mandalay Bay Resort and Casino, had opened fire on attendees.

58 people have been killed so far, and 515 injured, making this the deadliest mass shooting in modern U.S. history (Updated).

Police say the suspected shooter, Stephen Craig Paddock, had at least 10 weapons with him inside the hotel room. While motive is unclear at this point, authorities do believe Paddock killed himself prior to police entry.

Flights in and out of Las Vegas’ McCarran International Airport were temporarily halted because of the shooting, and agents for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives have responded to the scene; the FBI, too, is assisting with the investigation.

Monday morning saw shares of some of the biggest casino stocks react to the news. MGM Resorts (MGM - Free Report) , which owns Mandalay Bay, is down about 4.7% to $31.07 per share in late-morning trading.


"Our hearts and prayers go out to the victims of last night's shooting, their families, and those still fighting for their lives," said Jim Murren, MGM's chairman and CEO, in a statement. "We are working with law enforcement and will continue to do all we can to help all of those involved."

Shares of Wynn Resorts (WYNN - Free Report) are trading down 1.8%, while Caesar’s Entertainment Corp. (CZR - Free Report) is down about 1% in late-morning trading as well. Las Vegas Sands (LVS - Free Report) fell has much as 2.1% earlier today, but the stock has regained most of its losses.



Other market reactions to the Las Vegas tragedy include those of firearm stocks, which have experienced active trading so far Monday. Shares of Sturm Ruger & Co. (RGR - Free Report) and Smith & Wesson parent American Outdoor Brands Corp. (AOBC - Free Report) are climbing 4.6% and 4.7%, respectively.

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