Why Carnival, Norwegian, and Royal Caribbean Are Taking on Water Today
Shares of cruise ship stocks have that sinking feeling this morning, with Carnival (NYSE: CCL)(NYSE: CUK), Norwegian Cruise Line Holdings (NYSE: NCLH), and Royal Caribbean Cruises (NYSE: RCL) all falling 4% or more at 10:41 a.m. ET on Tuesday.
While there was no specific company or industry news to trigger the rogue wave that is swamping cruise stocks, Walmart yesterday issued a profit warning for its second-quarter and full-year earnings that also said consumers were cutting back on discretionary spending.
The prospect of a second consecutive quarter of gross domestic product contraction -- the rule of thumb for what a recession is -- suggests consumers are stepping hard on the spending brake, which could lead to fewer people taking cruises.
Source Fool.com
