Cruise stocks are taking on water Monday after the Centers for Disease Control and Prevention (CDC) dashed hopes for sailing to resume sooner than expected.
Cruise companies were pushing for the CDC to allow cruises to resume in July, which would have been a boon to stock such as Royal Caribbean Cruises (NYSE:RCL), Carnival (NYSE:CCL), and Norwegian Cruise Line Holdings (NYSE:NCLH). Unfortunately for investors, the CDC shot down this suggestion.
So when will cruises finally be allowed again? At this point, the CDC is sticking to its original plan. This won’t let these companies relaunch completely until November. That’s a long time to wait for stocks that have already taken quite the beating from the novel coronavirus pandemic.
However, not all hope is lost for cruise stocks. Florida Gov. Ron DeSantis is threatening legal action over the ban on cruises. He plans to sue the federal government if the CDC doesn’t allow cruise companies to resume business by this summer.
DeSantis’ hope is that a push against the government could bolster Florida’s economy after the pandemic. However, cruises are hotbeds for viruses with people packed into a small space for weeks at a time. That one reason cruses haven’t been able to reopen alongside other businesses.
TheStreet.com’s Jim Cramer also shined a light on reopening plans with comments on the matter. That includes saying that the federal government needs to set down rules for businesses. He argues that the disconnect between local, state, and federal governments is making it hard for businesses to know what to do when reopening.
RCL stock was down 2.6%, CCL stock was down 2.4%, and NCLH stock was down 2.3% as of Monday afternoon.
It isn’t just cruise stocks that are on the move Monday.
Several other companies are also seeing movement today for a variety of reasons. Examples include Healthier Choices Management (OTCMKTS:HCMC), Humanigen (NASDAQ:HGEN), and Riot Blockchain (NASDAQ:RIOT).
More Stocks on the Move
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.