Diamonds and Dogs
Wynn on a win streak. Wynn Resorts (WYNN) is jumping 7% following better than expected gambling revenue out of Macau, China for the month of April. The numbers were actually not great as the world's top casino gambling destination saw revenue drop 9.5% to $2.17 billion, topping some estimates. Bad news is still good news for the casinos as many of the stocks are off to a good start in 2016, but are stil well off their highs over the previous years. Wynn Resorts in particular is up 35% year to date, but down over 60% since the 2014 highs.
The gate has opened to the sea of red with today's dog. Seagate Technology (STX) is down another 5% to a new 52 week low after dropping 18% last week. The electronic data storage company is down 43% year to date following a preannouncement of dismal first quarter earnings last week. Toda, JP Morgan downgraded the company's shares to "underweight" from "neutral" with a price target of $15. JP Morgan also doesn't foresee Seagate maintaining their current dividend which yields 12%. RBC Capital Markets believes that Seagate will not be able to keep their dividend as well and lowered their target price from $36 to $24 a share.