- Cruise stocks slumped in Friday morning trading, continuing a downturn after the CDC extended its no-sail order through September 30.
- Royal Caribbean fell as much as 4.5%, while Carnival and Norwegian Cruise Line dropped 2.9% and 3.8%, respectively. All three companies sank at least 7% in Thursday’s session.
- The cruise lines pared losses later in the morning.
- The CDC cited “ongoing” COVID-19 outbreaks aboard ships. The sailing ban was set to expire on July 24.
- Visit the Business Insider homepage for more stories.
Cruise stocks tumbled for the second straight day after the Centres for Disease Control and Prevention extended its no-sail order through September 30.
RoyalCaribbean slid as much as 4.5% on Friday after closing 7.6% lower in the previous session. Carnival dropped 2.9% following a 9.7% decline on Thursday. Norwegian Cruise Line fell 3.8% after a 15.6% plunge.
All three names pared most of their losses later in the morning.
The CDC cited “ongoing” COVID-19 hot spots aboard ships in its decision to keep vessels from cruising out of US ports. The ban was set to expire on July 24 after taking effect on March 14. An April 15 extension order gave cruise companies the chance to submit plans to safely resume operations, but the CDC said initial efforts “did not fully meet all the requirements” set in the April extension.
Cruise stocks haven’t enjoyed the same upswing seen elsewhere in the stock market. While the Nasdaq composite is fresh off of record highs and the S&P 500 index flirts with erasing its 2020 losses, Royal Caribbean, Carnival, and Norwegian Cruises are down roughly 61%, 70%, and 74% year-to-date, respectively.
Much of the subsector’s decline is tied to early outbreaks across several cruise ships. In its Thursday release, the CDC said at least 2,973 coronavirus infections and 34 deaths could be tied to cruise ships. The institute’s data also shows 99 outbreaks across 123 different cruise ships, meaning 80% of ships operating in the US were affected by COVID-19, director Robert Redfield said.
Royal Caribbean traded at $US53.74 per share as of 9:55 a.m. ET Friday. Carnival traded at $US15.86 and Norwegian Cruise Line traded at $US15.49.
Now read more markets coverage from Markets Insider and Business Insider:
JPMORGAN: US stocks are staring down a double whammy of spiking COVID-19 cases and an uncertain election – but traders shouldn’t stay away entirely. Here are 3 strategies for those looking to stay invested.
Business Insider Emails & Alerts
Site highlights each day to your inbox.