Why Carnival, Norwegian Cruise Line, and JetBlue Soared Today
Travel-oriented names were up big on Tuesday, with Carnival (NYSE: CCL), Norwegian Cruise Line Holdings (NYSE: NCLH), and JetBlue Airways (NASDAQ: JBLU) up 7.7, 6.5%, and 4.8%, respectively, as of 12:15 p.m. ET.
Oil prices were crushed on Tuesday, down 7.3% to around $96.50 per barrel. Since oil prices are so important not only for these companies' cost structures but also customer demand, these three companies almost act like oil's mirror image. Given how much they have been beaten down, no wonder they are rocketing higher today.
Despite ongoing concerns over tight supply, oil was plunging on Tuesday, most likely due to fears of a potential recession, as well as more lockdowns in China as a result of a wave of omicron coronavirus infections in that country. Making matters worse, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said on Tuesday that the new BA.5 subvariant of COVID-19 "substantially evades" the protection of both vaccines and prior infection.
Source Fool.com
