Stock Market Soars Into the Weekend as Carnival Sees Strong Cruise Demand, United Inks Pilot Deal
The stock market bounced back on Friday with a vengeance, taking heart from positive news on potential coronavirus treatment options that investors hope will put an end to the pandemic sooner rather than later. The Dow Jones Industrial Average (DJINDICES:^DJI) saw the biggest gains on a percentage basis, but the S&P 500 (SNPINDEX:^SPX) also climbed more than 1%, and the Nasdaq Composite set a new record high.
Some of the stocks that did best today were those that have taken the most damage from the coronavirus crisis. Carnival (NYSE:CCL) had good news for those following the beleaguered cruise ship industry. Elsewhere in travel, airline giant United Airlines Holdings (NASDAQ:UAL) also achieved an important milestone in its efforts to cut costs and reduce the rate at which it's burning through available capital.
Carnival shares rose 11% on Friday. Investors reacted optimistically overall to a business update that the cruise giant issued, even though the fundamental news about the company was mixed.
On the positive side, Carnival has seen a considerable volume of new bookings for 2021 cruises come in. Even with reduced spending on marketing and sales support, about 60% of Carnival's activity in the first three weeks of June came from new bookings. Cumulative advance bookings for 2021 are within historical ranges, with prices down only by low- to mid-single digit percentages.
However, Carnival also took dramatic action to cut costs. The cruise ship operator plans to dispose of 13 ships, reducing its overall capacity by 9%. In ...
More on: www.fool.com