The Dow Jones Industrial Average broke through the 24,000 barrier for the first time on Thursday morning, marking an all-time high for the index that mirrors similar growth in stock prices for major gaming firms.
While many factors have contributed to the recent surge, one reason for the latest index bump seems to be the Senate’s upcoming vote on a bill to overhaul federal tax code. The bill includes a significant cut in the corporate tax rate, something that several major companies have indicated would primarily benefit shareholders in the form of higher dividends.
2017 Bull Run Began Eight Years Ago
The Dow has risen nearly 35 percent in the year since President Donald Trump was elected. But looking even further back reveals the market has been on a sustained upward trajectory since 2009, with the index rising 264 percent over the past eight years, one of the longest-running bull markets in history.
“Stocks have soared this year, lifted by the strong winds of improving global growth, optimism about pro-growth US policies and still-low interest rates,” said Kate Warne, an investment strategist at Edward Jones.
The Dow Jones Industrial Average is made up of 30 stocks that represent a cross-section of the American economy. Corporations in the index include Apple, Coca-Cola, Walt Disney, McDonalds, Nike, and Wal-Mart. An adjusted average of the 30 stocks is used to come up with the total index price.
Gaming Stocks Also Rise
No casino or gaming industry stocks are included in the Dow. However, major gaming firms have indeed benefitted from the bull market, posting gains in recent months and quarters. Analysts contend a key driver to be Macau, as the territory’s casinos have seen revenues rise for 16 consecutive months.
Sheldon Adelson’s Las Vegas Sands Corp. was up more than a point in early trading Thursday, continuing to build on recent stock growth. Over the past three months, the company’s share price has risen more than 10 percent as the operator has posted strong earnings, particularly in the Asian markets of Macau and Singapore.
Wynn Resorts, which trades on NASDAQ, was up more than two points Thursday morning, an increase of more than one percent. The company’s stock has risen nearly 14 percent over the past three months, with revenues increasing both in Asia and in Las Vegas.
These are hardly the only examples of casino operators who have seen values skyrocket in recent months. Common stock in Caesars Entertainment, which just emerged from bankruptcy, is up about 14 percent in the past quarter.
Even MGM Resorts International, which saw its stock take a major hit following the Oct. 1 mass shooting in Las Vegas, has recovered in the past month. In November, the company’s stock price is up more than 8 percent, even as the firm may face lawsuits from more than 450 victims of the shooting.