Cruise Stocks Soar as Carnival Posts Surprise Profit

Major U.S. equities indexes were mixed Tuesday as data showed home prices jumped to an all-time high and Consumer Confidence Index (CCI) slightly declined.

The S&P 500 added 0.4% on Tuesday, posting a daily gain for the first time since reaching an all-time closing high one week ago. The Nasdaq was up 1.3%, boosted by a recovery from semiconductor giant Nvidia (NVDA) and other artificial intelligence (AI) players. The Dow fell 0.8%, pressured by declines in Home Depot (HD) and other components.

Shares of cruise operators sailed higher after Carnival Corp. (CCL) reported an unexpected profit for the second quarter. According to Carnival, higher ticket prices, increased onboard spending, and the timing of expenses helped drive strong results. The company also noted that demand remains strong and lifted its full-year forecasts.

Carnival shares soared 8.7% following the strong earnings report, marking the S&P 500’s top performance on Tuesday. Other stocks in the cruise industry also moved higher, with shares of Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises (RCL) gaining 5.1% and 4.0%, respectively.

Nvidia shares recovered following three straight sessions in negative territory, jumping 6.8%. The gains came ahead of the chipmaking behemoth’s annual meeting on Wednesday where shareholders will vote on a range of issues including executive compensation, board member re-election, and the ratification of PwC as Nvidia’s accounting firm. While analysts don’t anticipate that the company will make any major announcements at the meeting, the event could serve as an opportunity for Nvidia to highlight its AI capabilities.

Shares of Intuitive Surgical (ISRG), which makes robotic systems to assist in minimally invasive surgical procedures, gained 3.1%. The company received approval for its next-generation da Vinci 5 device in March, and in its most recent quarterly report released in April, Intuitive touted year-over-year growth in procedures performed with its products.

Shares of Pool Corp. (POOL) sank 8.0%, suffering the steepest losses of any S&P 500 component, after the provider of products for swimming pools slashed its full-year guidance. The company said the challenging economic environment has reduced consumer discretionary spending and lowered demand for its products.

The weakened outlook for swimming pools also pressured Pentair (PNR), which serves as a primary distributor for Pool Corp. Pentair shares plunged 7.1% after RBC Capital Markets trimmed its price target on the stock. Pentair reportedly generates around a third of its total revenue from its pool segment, but its diverse portfolio of water treatment products and sustainable solutions could help cushion the company against the swimming pool slowdown.

Beyond swimming pools, the more muted outlook on home-improvement spending appeared to spread to other stocks in the industry. Shares of residential and commercial flooring provider Mohawk Industries (MHK) fell 5.7%, while retail giants Lowe’s (LOW) and Home Depot saw their shares drop 4.9% and 3.6%, respectively.

Solar power equipment provider SolarEdge Technologies (SEDG) announced that one of its clients had filed for bankruptcy and will likely be unable to pay its debt. SolarEdge shares plummeted 20.6%, and other stocks in the solar industry also moved lower, with shares of solar micro-inverter manufacturer Enphase Energy (ENPH) falling 5.7%.