DraftKings jumps 15% as US gambling stocks rally on June retail report
The rise came in ahead of consensus forecasts at 0.8% and marked a major improvement on the 0.1% fall recorded in May.
The report provided a confidence boost for investors and an uplift in market sentiment.
It showed that consumers spent more on a wide range of goods in June, including on food and gas, despite inflation hitting a new four-decade high only recently.This rise was primarily driven by gas stations amid rising fuel prices, with sales up 3.6% on the prior month. Excluding gas stations, US retail sales still rose by 0.7% in June.
DraftKings led the charge for US-listed gambling stocks, rocketing 14.6% between market open and market close on Friday 15 July to end up at $12.86 per share.
This resulted in a one-week uptick of 12.5% for the Boston-based sports betting operator, which shareholders will be hoping represents a turnaround for the beleaguered stock. Shares in DraftKings are still down 80.1% from their 52-week high of $64.58.
Rush Street Interactive also surfed the wave with an 8.8% daily rise, while Penn National Gaming (7.7%) and Caesars Entertainment (6.4%) also reaped the benefits.