Carnival Corp (CCL) to Hold
Carnival Corp (CCL) is trading 5% lower this morning, after Credit Suisse downgraded the stock to neutral. The bank warned that the devastation wrought by Hurricane Irma could affect demand for Caribbean cruises. Added to increasing tensions with North Korea, the Hurricane could leave demand short of increasing supply, Credit Suisse analysts said.
I’ll move CCL to Hold while we wait to see what the stock does in the coming days. If all is well, CCL will find support at 65 again, and bounce back above its 50-day soon. A deeper correction could see the stock fall as far as its 200-day moving average, currently around 60. Either way, we may take some profits next week; our total return in CCL is now about 38%.