Cruise stocks fall after CDC fails to extend navigation order, analyst says further delays expected

Cruise ship operator stocks fell in premarket trading on Friday, after the Centers for Disease Control and Prevention (CDC) extended its “no-sail order” to cruises until September 2020 amid an increase in new cases of COVID-19. The previous CDC order expired on July 24. The shares of Norwegian Cruise Line Holdings Ltd. NCLH,
-1.40%
fell 2.7% prior to opening, Royal Caribbean Cruises Ltd. RCL,
-0.38%
shed 2.6% and Carnival Corp. CCL,
+ 0.35%
fell 1.1% SunTrust analyst Robinson Humphrey Patrick Scholes said the CDC’s extended order “shouldn’t come as much of a surprise” as it comes after last month’s announcement by the International Association of Cruise Lines of an agreement to voluntarily extend the suspension of operations of US ports until September 15. “We continue to believe that departures will not resume in North America until at least 2Q21,” Scholes wrote in a note to customers. . “Subsequently, we reiterate our belief that there will be continued investor disappointment as more delays are announced at the start date. Norwegian shares have plummeted 73.3% so far this year, the shares of Royal have fallen 59.6% and Carnival shares have fallen 69.0%, while the S&P 500 SPX,
+ 0.14%
it has decreased 0.5%.