Cruise Stocks Rise on Positive Study Results From Covid-19 Vaccine Candidate
November 16 2020 - 9:35AM
Dow Jones News
By Dave Sebastian
Shares of cruise operators rose along with the broader market on
developments with Moderna Inc.'s Covid-19 vaccine candidate, as
investors cheered on the closer step to economic normality and
travel recovery.
In premarket trading Monday, shares of Carnival Corp. rose 8%,
Royal Caribbean Group rose 7% and Norwegian Cruise Line Holdings
Ltd. rose 9%. Shares of Walt Disney Co., which owns cruise-line and
theme-park businesses, rose 2% in premarket trading.
The Centers for Disease Control and Prevention recently lifted
its ban on cruise sailings in the U.S. But to win conditional
sailing approval, cruise operators must conduct mock sailings and
fulfill other requirements. That suggests January as the earliest
ships can start sailing again in the U.S., analysts say.
Last week, seven people aboard a ship operated by SeaDream Yacht
Club tested positive for Covid-19, SeaDream executive Andreas
Brynestad said Sunday, leading the trip to be cut short. The ship
had 54 passengers and 68 crew members, he said. Guests were tested
while on quarantine on the ship and in Barbados, and those who
didn't test positive were allowed to travel back home, Mr.
Brynestad added.
The hiccup drew rebuke from Sen. Richard Blumental and Rep.
Doris Matsui, both Democrats, who called for the CDC to reinstate
its sailing ban in the U.S. The two members of Congress are lead
sponsors of the Cruise Passenger Protection Act, which aims to
revamp medical standards on cruise ships.
The cruise industry group maintains that virus transmission
risks can be mitigated with rigorous protocols.
"Unfortunately, no setting is immune from the virus but our
members are fully committed to implementing enhanced mitigation and
response measures to minimize risk and protect public health," the
Cruise Lines International Association said.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
November 16, 2020 09:20 ET (14:20 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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