Stock Markets Sink on Cruise Ship Stock Sales; Online Travel Shares Fall

Tuesday was an off day on Wall Street, as investors hit the pause button in what has been an amazing upward move for the overall stock market in recent weeks. Losses weren’t all that significant, with the Dow Jones Industrial Average (DJINDICES:^DJI) and S&P 500 (SNPINDEX:^GSPC) losing just enough to give bullish market participants the idea that indexes are setting up for another big push higher.

Today’s stock market

Index

Percentage Change (Decline)

Point Change

Dow

(0.55%)

(158)

S&P 500

(0.63%)

(22)

Nasdaq Composite

(0.10%)

(12)

Data source: Yahoo! Finance.

Yet there were some really big losers on Tuesday, and they largely came from the travel industry. In particular, cruise ship operators saw their share prices drop significantly as the hard-hit companies got even more bad news about their immediate prospects. Meanwhile, more broadly, online travel giants like Booking Holdings (NASDAQ:BKNG) and Expedia Group (NASDAQ:EXPE) didn’t fare particularly well, either. Below, we’ll look at the factors hitting these stocks in more detail.

Taking on more water

The losses in the cruise ship industry were substantial. Royal Caribbean (NYSE:RCL) saw the biggest declines, falling 13% on the day. Norwegian Cruise Line Holdings (NASDAQ:NCLH) and Carnival (NYSE:CCL) both followed suit with drops of 8% on Tuesday.

Cruise ship in a harbor with an island and beach nearby.

Image source: Getty Images.

The industry has been in trouble for a long time. At the end of September, the Centers for Disease Control and Prevention extended the no-sail order governing U.S. cruises by a month, and many believe that the regulatory agency would have preferred to move forward more aggressively with an extension all the way through the first month of 2021.

Carnival got off to a bad start on Monday by announcing it would cancel its November cruises. Royal Caribbean and Norwegian had already taken that step. That now makes it a very real possibility that the industry won’t end up having any activity at all through the end of 2020.

The latest news sinking cruise stocks came from Royal Caribbean, which decided to cancel its Australia and New Zealand cruises through the end of the year. Moreover, the company once again turned to the capital markets for money, raising $1 billion with sales of $500 million in stock and $500 million in three-year convertible debt.

Investors have been willing to keep cruise companies afloat, providing them more cash even without firm prospects for a restart. How long that will last is anyone’s guess, but shareholders have to be losing patience with the companies and their lack of certainty about what the future will hold.

Travel sites face huge uncertainty

Elsewhere in travel, Expedia and Booking Holdings were both down more than 3%. The pains in the cruise ship industry were only one factor weighing on the online travel booking sites.

Airline earnings started coming out today, and Delta Air Lines (NYSE:DAL) had a lackluster performance that included huge losses. It’s likely that the rest of the airlines will see similar issues.

To be fair, Booking and Expedia get more of their business from

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Perfect Vacation Destinations For Your Fall Getaway

So, summer is slowly, but surely, getting away from us, and try as we could to make this the summer that would blow all others out of the water, the season has slipped away. Even more depressing is the fact that we took no time off from work, which mean the list of possible vacation destinations we’d put together so carefully is now one more piece of paper to add to the “shred” pile in your home office. What happened?

First of all, you need a serious chill pill. You sound like a certain toy donkey that just can’t help but spread the blues everywhere he goes. So, you missed out on taking a vacation during the summer. So what? In case you didn’t know, there are nine other months in the year, which means you’re not without options for a getaway. The thing is you need to think a bit more critically about where you’re going and what you’re getting yourself into.

Fall, or if you prefer autumn, is one of the most breathtaking times of the year. You start to see colors that remind you of pumpkin pie and scarves. You notice a bit of a nip in the air, which means it’s time to get your cute cold weather clothing out of storage because it’s about to go down. What’s more, show off your cute clothing on a little getaway. If you’re really serious about taking your vacation, take advantage of the fall. It’s a lighter travel season, which means less crowds and big savings.

Here are some of the most perfect vacation destinations for you to consider this fall:

Boston, MA – The weather will have a nice snap to it, and you’re in the hotbed for American History (learning doesn’t take a vacation). Cross the Charles River and hang out at Harvard. You’ve got some of the most sacred sports destinations in the world (The Garden and Fenway), the museums are killer, and walk the same cobblestones our country’s founding fathers walked.

San Antonio, TX – You may have checked out the River Walk before, but the fall is an otherworldly experience. Even in the heart of Texas, you’ve got world-class restaurants, tremendous shopping, and you can actually visit The Alamo, perhaps the most important edifice in the Lone Star State.

Sedona, AZ – You want ‘trippy’? Check out Sedona. It is the place to be if you’re even the slightest bit curious about healing crystals and aura readings. The weather is amazing and the vistas are grand, and you’ll find no lack of interesting people. Before you leave, visit one of the spiritual shops & maybe learn a little about yourself.

Red River, NM – You’re in the Rocky Mountains and part of Carson National Forest. You’re way above sea level, and the outdoors is there for your enjoyment. Hiking, biking, fishing, tubing (all year), a local community house filled to the brim with activities, and a population of about 500 people. Talk about …

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