Cruise Stocks Rise on Positive Study Results From Covid-19 Vaccine Candidate

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 [e-mail]

(END) Dow Jones Newswires

November 16, 2020 09:20 ET (14:20 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.