CCL Stock Price: Carnival Corp fails first attempt at resistance, has good chances now amid upbeat mood
|- Carnival Corp's shares have been trending higher but fell short of the recent highs.
- An upbeat market mood allows CCL a second chance at moving higher.
- Optimism about reopening seems to outweigh concerns about US civil unrest.
If at first, you do not succeed, try, try again – the adage is relevant for Carnival Corp's stocks, which closed below the $17.24 peak recorded in late May, but still up on the day. NYSE:CCL is above $17 in Wednesday's pre-market trading.
The cruise ship company has good reasons to rise. Coronavirus remains under control in Asia and statistics are falling rapidly in Europe. There is room for concern in the US, where the data is going in the right direction, yet the recent civil unrest, including dense protests, raises the risk of contagion and a second wave.
Nevertheless, equity markets remain upbeat amid the generally positive trend of reopening and the economy. Moreover, the ongoing support from the Federal Reserve has also kept stocks bid.
The demonstrations across American cities may also have a silver lining, at least for shares. Democrats and Republicans have reportedly accelerated talks to provide another stimulus package for the economy. Talks were moving at a snail's pace amid reluctance from Republicans for more spending.
In Carnival-specific news, the company is ramping up preparations to get its ships ready for the season. That includes health and sanitation protocols, regulations for serving food and beverages, pre-screening protocols, and more. Eight cruises are scheduled to set sail on August 1, and others in October.
More analysts advocate buying the stock than selling it – although only at a ratio of 21% to 11%, while 68% support only holding the stock. The firm seems to have shrugged off concerns about a COVID-19 related lawsuit.
CCL Stock Dividend
An ongoing increase in share prices and sales of cruise nautical holidays is essential for the company to continue paying out dividends. Carnival has been increasing its payouts in recent years, and this trend will likely be cut short.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.