Why Carnival and Other Cruise Line Stocks Are Bouncing Back Today
Stock markets continued to recover from last week's sell-off on Tuesday, with the Dow, S&P 500, and Nasdaq all up 2% or more in late-morning trading. Joining in the rally (surprisingly) are cruise stocks Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH). As of 11:35 a.m. ET today, they were up 11.5%, 11.7%, and 12.6%, respectively.
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The latest news from cruise land was not great. On Friday, industry bellwether Carnival announced a massive miss on its third-quarter earnings report -- $0.65 per share in losses, much worse than Wall Street's predicted loss of $0.13 per share -- and revenue that was a whopping $800 million below projections. Adding to investors' misery, Carnival warned that the fourth quarter is shaping up to be below average for bookings, and that the company is anticipating another loss.
Source Fool.com
