The sector got a boost as the Fed reduced the federal funds rate, which was at 1.5 percent, to 1 percent. The rate is the interest that banks charge for overnight loans.
Earlier, MGM Mirage reported its third-quarter profit slid 67 percent, partly on a write-down. Analysts focused more on cost the company’s control and funding efforts.

MGM obtained a $1.8 billion senior bank credit facility earlier this month to help with its $9.2 billion CityCenter project in Las Vegas reports it has received more commitment letters for more than $500 million. The firm is working with joint venture partner Dubai World to get more funds. The firm is looking to secure a total of $3 billion in financing.

Jake Fuller, an analyst with Thomas Weisel Partners, said that MGM discussed during a conference call with analysts a $400 million reduction to CityCenter’s budget. That mad the project easier to fund, and lead to a lower-than-expected estimate for 2009 capital expenditures of $200 million.
Stifel Nicolaus & Co.’s Steven Wieczynski said the cost reductions, should help the stock.