Stock Market News: Cruise Stocks Bulls Make Their Case
The stock market fell Friday morning, reversing course following an impressive rebound late Thursday. The most recent economic data shows considerable weakness in the U.S. economy, with the retail sector seeing one of the biggest hits lately. Retail sales dropped by more than 16% in April, a record decline and much worse than the 12% that most economists had anticipated. As of just after 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 235 points to 23,390. The S&P 500 (SNPINDEX: ^GSPC) fell 30 points to 2,823, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 97 points to 8,849.
The prospects for local reopenings are good for ailing retailers, but for cruise ship stocks, challenges linger on. Facing an ongoing no-sail order and concerns about how the industry will be able to adapt to post-coronavirus realities, Royal Caribbean (NYSE: RCL), Norwegian Cruise Line Holdings (NYSE: NCLH), and Carnival (NYSE: CCL) have all faced major declines in 2020 as their very existence has been called into question. However, the three cruise ship stocks were higher by as much as 4% and 6% earlier this morning, with bullish investors making their case that the companies are doing what it takes to get the job done.
One of the biggest fears about cruise ship companies is that they won't be able to find a way to return to normal operations as long as there are any worries about COVID-19 or other health concerns. Cruise operators have suffered from several high-profile outbreaks in the past, and that's led to congressional inquiries into what cruise operators are doing to address health issues.
Source Fool.com
