Tourism stocks lead a COVID-weary market down. Is the comeback under way?
Cruise lines, airlines and casinos took a beating in the first wave of COVID, and Omicron has their investors on edge.
As the US stock market wrapped up a tough week last week, tourism stocks – hit heavily when COVID first surfaced – helped lead the market down. Many were among the market’s biggest losers for the last week.
Today many of the same stocks are rising as the market bounces. But they’re still well off their one-year highs, in a larger decline that’s been in place since early spring. So more volatility may be ahead.
Outlook for tourism stocks could be tough
Knowing little about Omicron, the market slid late last week among fears of an increased risk of infection and the potential economic fallout of this new coronavirus variant. But the course was volatile and the market bounced to begin this week.
Tourism stocks were particularly punished by investors last week, but some market experts said the panic was overblown. If so, many of these stocks present a buying opportunity, if you’re willing to wait for a recovery and those past highs.
The key for these industries is finally getting past COVID globally. And as Omicron has shown, that point isn’t here yet.
Several tourism stocks among top 20 S&P 500 losers last week.
Cruise, airline, casino and resort stocks posted some of the largest losses last week.
Since gapping to the downside last Friday, shares of Norwegian Cruise Line have been on a steady decline. The stock opened Monday at $21.10, but the stock continued heading south as news broke Wednesday of the Omicron variant reaching the US. Shares closed today at $18.29, down 15.33% over the last week.
Norwegian Cruise Lines ranked 2nd among the top 20 S&P 500 losers over the last week. But it was up 11% at midday today.
Shares of Royal Caribbean Cruises opened $7.31 lower last Friday. The stock saw a slight rebound Wednesday before declining again on developing Omicron concerns. Shares of Royal Caribbean Cruises closed at $66.76 today, down 12.08% the last week.
Royal Caribbean Cruises ranked 4th among the top 20 S&P 500 losers over the last week. But it was up almost 10% at midday today.
Like other cruise stocks, Carnival Corporation has been on a similar trajectory since late last week. After opening more than 10% down last Friday, the stock has continued to tumble. Shares of Carnival Corporation closed today at $17.20, down 11.26% for the last week.
Carnival Corporation ranked 6th among the top 20 S&P 500 losers over the last week. But it was up almost 10% at midday today.
The casino stock, Las Vegas Sands Corporation, opened $2.68 lower last Friday as Omicron anxiety breached the gaming industry. This dip continued this week as experts continue to weigh the severity of Omicron. Shares of Las Vegas Sands Corporation closed at $34.28 today, down 11.05% for the week.
Las Vegas Sands ranked 8th among the top 20 S&P 500 losers over the last week. Today’s gain at midday: 9%.
United Airlines stock gapped down 6.5% last Friday on news of Omicron. The stock continued to bleed this week and ended Wednesday’s trading session deep in the red. Shares of United Airlines closed at $40.61 on Friday, down 10.89% over the last week.
United Airlines ranked 10th among the top 20 S&P 500 losers over the last week. At midday today, it was up 10.5%.
Shares of American Airlines saw similar price action this week. The airline stock opened $1.19 lower Friday morning but saw an even greater drop Wednesday on news of Omicron reaching the US. After a slight rebound Thursday, shares of American Airlines closed at $16.62 on Friday, down 10.48% the last week.
American Airlines ranked 11th among the top 20 S&P 500 losers over the last week. But it was up almost 10% at midday today.
Omicron dragged down shares of Wynn Resorts by more than 7% last Friday morning. Since then, the stock hasn’t been able to recoup any of its losses. Shares of Wynn Resorts have been falling all week, closing at $80.10 on Friday. Shares were down 9.77% for the week.
Wynn Resorts ranked 17th among the top 20 S&P 500 losers over the last week. Today’s gain at midday: 7%.
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