Why Cruise Line Stocks Jumped This Morning
Cruise line volatility continued on Wednesday but this time stocks were moving higher. There weren't any major news items like earnings, but a rising stock market and falling oil prices have helped valuations today. It's also possible that investors are speculating that student loan forgiveness will give consumers more money to spend on things like cruises.
Shares of Carnival (NYSE: CCL) (NYSE: CUK) jumped as much as 14.8%, Norwegian Cruise Line Holdings (NYSE: NCLH) rose 8.2%, and Royal Caribbean (NYSE: RCL) popped 7.1%. The stocks were up 5.2%, 7.6%, and 7% respectively at 11:45 a.m. ET.
The market may still be pushing shares higher after Carnival extended its 2023 debt due by 18 months yesterday. The market is at least looking for debtors to give the industry enough of a lifeline to return to full operations and hopefully profitability. More debt maturities may need to be extended or refinanced in the next few years, but that's a worry for another day.
Source Fool.com
