Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+0.6%) remain firmly higher shortly after midday. 

Caesars Entertainment (CZR 21.62, +2.67, +14.09%) is surging higher following its 4Q25 earnings report, as results were better than feared and management outlined a compelling free cash flow outlook for 2026, overshadowing an EPS miss. Expectations were extremely low heading into the print, with the stock down more than 50% year-over-year, so improved operating trends and clearer capital return visibility are driving a sharp relief rally. While CZR reported a GAAP loss of $(1.23) per share, investors are instead focusing on cash flow generation and improving segment profitability.

Investors are encouraged by a better-than-feared quarter and, more importantly, a clearer path to materially stronger free cash flow in 2026. Sequential improvement in Las Vegas, resilient regional trends, and a sharp profitability inflection in Caesars Digital reduce downside risk. With capex rolling off and balance sheet pressures easing, investors appear increasingly focused on forward cash generation and capital returns rather than headline GAAP losses. 

Though no longer a component of the S&P 500 itself, the move has rippled across other casino and gaming names such as MGM Resorts (MGM 37.05, +2.78, +8.11%) and Wynn Resorts (WYNN 118.56, +4.16, +3.63%), adding to strength in the consumer discretionary sector (+1.6%).