Stock Market Soars Into the Weekend as Carnival Sees Strong Cruise Demand, United Inks Pilot Deal

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 ...
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