Why Cruise Line Stocks Sailed Higher Today
On Monday morning, shares of all major cruise line stocks were sailing higher. As of 11:35 a.m. ET, Norwegian Cruise Line Holdings (NYSE: NCLH) was up 8.4%, followed by Royal Caribbean (NYSE: RCL) jumping 8.6%, and Carnival Corporation (NYSE: CCL) edging into the lead with a gain of 8.7%.
You can almost certainly thank the Federal Reserve for that.
For the past several weeks, the story on cruise stocks has gone something like this: Inflation is rising, and that means that cruises will cost more and generate more revenue, even as the value of cruise companies' heavy debt loads falls -- making it easier for cruise lines to pay down the tens of billions of dollars' worth of debt they racked up during the pandemic. (So that's the good news for cruise stocks.)
Source Fool.com
