- NYSE:CCL drops 3.44% as cruise-line industry takes a hit despite broader markets rebounding.
- AstraZeneca coronavirus vaccine reveals adverse reaction to patients as it halts testing.
NYSE:CCL continues its tumultuous year as the fate of the stock remains tied to the possibility of a coronavirus vaccine. The cruise industry remains landlocked though and threatens to be out of commission until a vaccine is created. Shares of Carnival are now up 126% off its 52-week lows of $7.80 – but still down 65% off its 52-week highs of $51.94 which shows how beaten down companies in this sector are. Carnival is now trading above its 60-day and 200-day moving averages showing that it is on an upward trajectory – but much of that could have been on the optimism of an impending vaccine.
The cruise industry can be lumped in with the airlines and hotels as some of the hardest hit by the novel coronavirus around the world. Currently, optimistic travellers can book cruises for next year although this is contingent on agencies like the CDC which has recently extended its no-sail order through to September 30th. In some countries that are either beyond the worst of COVID-19 or were never affected, to begin with, cruises have been able to resume service. Specifically, the European arm of Carnival Cruise Lines in Italy and Germany have either re-engaged in cruise service or are scheduled to in the next couple of months.
CCL stock news
For CCL, as long as the coronavirus is present in the United States, a large number of its business will remain closed as the CDC continues to extend the no-sail orders. Industry rivals Norwegian Cruise Lines (NASDAQ:NCLH) and Royal Caribbean (NYSE:RCL) continue to struggle this year and just like Carnival, are well off their pre-COVID trading levels. The failure of AstraZeneca’s (NYSE:AZN) coronavirus vaccine should not be seen as a total game stopper for cruises but the further we are from a successful vaccine, the longer this industry will suffer to be profitable.
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