Why AMC Entertainment, Carnival, and Norwegian Cruise Lines Dropped Today
Shares of AMC Entertainment (NYSE: AMC), Carnival (NYSE: CCL), and Norwegian Cruise Lines (NYSE: NCLH) fell again on Wednesday after a tough month of June, down 3.3%, 6.3%, and 9.9%, respectively, as of 1 p.m. ET.
There wasn't any material news out of these companies today, but they all have two big things in common that are causing them to fall. First, each is a consumer discretionary stock, and it's clear consumers are cutting back amid high inflation for food and fuel. Second, each of these companies had to load up on debt during the pandemic. Not only do they now have the added burden of interest expenses, but with interest rates now higher, any refinancing would be expensive.
With the Federal Reserve now signaling its primary goal is to lower inflation, not avoid a recession, heightened recession fears are decimating these stocks.
Source Fool.com
