- Cruise stocks fell in Friday morning trading, continuing a recession after the CDC extended its order not to sail until September 30.
- Royal Caribbean fell as much as 4.5%, while Carnival and Norwegian Cruise Line fell 2.9% and 3.8%, respectively. All three companies sank at least 7% in Thursday’s session.
- Cruise lines reduced losses later in the morning.
- CDC cited “continuous” outbreaks of COVID-19 on board ships. The sailing ban expired on July 24.
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Cruise ship stocks fell for the second consecutive day after the Centers for Disease Control and Prevention extended their order not to sail until September 30.
Royal Caribbean fell as much as 4.5% on Friday after closing 7.6% lower in the previous session. Carnival fell 2.9% after a 9.7% decline on Thursday. Norwegian Cruise Line fell 3.8% after a 15.6% drop.
All three names cut most of their losses later in the morning.
The CDC cited COVID-19 “on-going” hot spots on board ships in its decision to prevent ships from leaving US ports. The ban expired on July 24 after it went into effect on March 14. An April 15 extension order gave cruise companies the opportunity to present plans to safely resume operations, but the CDC said initial efforts “did not fully meet all of the requirements” set forth in the April extension. .
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Cruise stocks have not enjoyed the same rebound seen elsewhere in the stock market. While the Nasdaq compound has not hit all-time highs and the S&P 500 index flirts with the erasing of its 2020 losses, Royal Caribbean, Carnival and Norwegian Cruises have fallen approximately 61%, 70% and 74% so far this year. , respectively.
Much of the subsector’s decline is related to early outbreaks on various cruises. In their statement Thursday, the CDC said that at least 2,973 coronavirus infections and 34 deaths could be related to cruises. The institute’s data also shows 99 outbreaks on 123 different cruises, meaning that 80% of ships operating in the US were affected by COVID-19, director Robert Redfield said.
Royal Caribbean was trading at $ 53.74 per share at 9:55 am ET on Friday. Carnival was trading at $ 15.86 and Norwegian Cruise Line was trading at $ 15.49.
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