Why Cruise Line Stocks Fell Again on Thursday
September started off on a low note for stock market investors Thursday, with the S&P 500 falling 1% and the Nasdaq down twice that as of 12:05 p.m. ET. Cruise stocks failed to navigate around the storm, and Royal Caribbean (NYSE: RCL) shares are down 3.9%, followed by Norwegian Cruise Line Holdings (NYSE: NCLH) with a 4.4% loss, and Carnival (NYSE: CCL) (NYSE: CUK) bringing up the rear -- down 4.6%.
You can blame the bond market for that.
As CNBC reported this morning, recent comments by Federal Reserve Chairman Jerome Powell warning of "some pain" to the economy, combined with lower unemployment numbers this morning (which could contribute to inflation, prompting even more interest rate hikes), have bond yields marching higher. For example, the 10-Year Treasury bond is approaching 3.3% after a steep run-up over the past week. The two-year Treasury just topped 3.5% -- its highest level in nearly 15 years!
Source Fool.com
