U.S. stocks futures are slightly lower but off of overnight lows as the Market Volatility Index (VIX) creeps higher ahead of Thursday’s trading session. Several states in the U.S. are experiencing a resurgence of COVID-19 infections, making investors wary of a second wave.
One sector hit the hardest by the pandemic, cruise liners, is down in premarket trading. Carnival Corp. CCL expects to resume guest operations in a phased manner, the company said in its summary 2Q earnings results earlier today. Carnival’s return to business-as-usual, however, was left open-ended; executives didn’t specify when CCL would return to normal operations, but they said it would happen after collaborating with government and health authorities. Carnival also withheld any fiscal year guidance. In the meantime, Carnival said it has received $2.6 billion in deposits as of May 31, but estimated that ongoing ship operating and administrative expenses will total $250 million per month until then. A Berenberg analyst downgraded shares of CCL to Sell from Hold with a $10 price target, down from $14.50. The stock closed Wednesday’s trading session at $19.09 and is down more than 60 percent year-to-date.
Other cruise line stocks are also down in premarket, including Norwegian Cruise Line NCLH, which extended its suspensions of ship departures by at least two months yesterday, and Royal Caribbean Cruise Line RCL. All three stocks have struggled to bounce back with the broader market since falling in mid-February.