Carnival Stock ( NYSE:CCL )
Carnival, the market leader in the cruise industry, dropped 3.6% from the opening bell on Friday until 10:50 a.m. EST, reversing a three-day trend of steady gains. Not even Carnival-related news could bring the stock price down today. Nonetheless, macroeconomic news has contributed to the stock’s decline .
What’s the Reason?
The week began on a good note for Carnival ( NYSE:CCL ), as the company said on Tuesday that Cyber Monday sales had increased by 50% compared to the previous Cyber Monday before the pandemic in 2019.
As reported on Monday, March 28–April 3 was the biggest booking week in Carnival’s history, confirming an earlier announcement from this year. That reaffirmed management’s belief that there is sufficient pent-up demand to sustain the stock’s upward trajectory.
However, there is also the state of the economy to think about. The U.S. Department of Labor said Friday morning that the economy added 263,000 non-farm jobs in November, roughly 30% higher than the 200,000 jobs predicted by economists. Wages for these positions are also increasing faster than projected, at 5.1% annually compared to the 4.6% pay growth predicted by economists.
What’s Next?
Is Carnival stock in trouble now? The data might be interpreted in many ways. However, one common interpretation (shared by most investors this morning) is that the economy is still operating at too high a temperature. With more people employed and with more disposable income, prices will continue to rise, forcing the Federal Reserve to maintain its gradually increasing interest rates. Most investors anticipate a ra...
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