Shares of AMC Entertainment (NYSE: AMC), Carnival (NYSE: CCL), and Norwegian Cruise Lines (NYSE: NCLH) fell again on Wednesday after a tough month of June, down 3.3%, 6.3%, and 9.9%, respectively, as of 1 p.m. ET. First, each is a consumer discretionary stock, and it's clear consumers are cutting back amid high inflation for food and fuel. Not only do they now have the added burden of interest expenses, but with interest rates now higher, any refinancing would be expensive.
Passengers boarding Norwegian Cruise Line Holdings ships won't have to take COVID-19 tests from next month unless required by local law, the U.S. cruise operator said on Wednesday as the crucial summer sailing season gathers steam. Cruises setting sail from the United States, Canada or Greece's Piraeus will still require pre-cruise COVID testing, and all of the company's guests aged 12 and above have to be fully vaccinated. Last week, rival Carnival Corp's Holland America Line said guests on three voyages departing from Amsterdam and traveling to Norway would not need to undergo pre-cruise COVID testing or provide a negative test result at embarkation.
What happened One of the industries that was hit the hardest by the coronavirus pandemic was a real downer this week too. Following a dark analyst note regarding Carnival (NYSE: CCL)(NYSE: CUK) in particular, all three of the major cruise industry stocks have been hammered over the past few trading days.