Cruise Stocks Sail Higher Amid Strong Demand

U.S. equities indexes were mixed after the latest Consumer Confidence Index data showed sentiment declining in February, revealing uncertainty about the trajectory of the U.S. economy and concerns about a tightening labor market.

The S&P 500 edged 0.2% higher on Tuesday but remained below the record high posted at the end of last week. The Nasdaq added 0.4%, while the Dow was down 0.3%.

Cruise line stocks sailed higher after Norwegian Cruise Line Holdings (NCLH) reported its first annual profit since 2019. The company also issued an upbeat forecast for the current quarter and full year, highlighting strong ticket demand. Norwegian Cruise shares topped the S&P 500 on Tuesday, soaring 19.8%. Shares of fellow operators Carnival Corp. (CCL) and Royal Caribbean (RCL) advanced 7.7% and 3.1%, respectively.

Although Constellation Energy (CEG) reported an unexpected quarterly loss, the Maryland-based electric utility issued better-than-expected guidance for its full-year profits, and its shares skyrocketed 16.9%. The company hopes to capitalize on demand for clean energy and from tax credits under the Inflation Reduction Act (IRA) that could help bolster its fleet of nuclear plants. Constellation Energy also announced a 25% dividend increase.

Shares of AutoZone (AZO) jumped 6.7%, reaching an all-time high after the auto parts retailer beat sales and profit forecasts for its fiscal second quarter of 2024. Higher prices for new and used cars helped boost demand for auto parts as drivers turn to do-it-yourself repairs to keep older vehicles on the road.

International Flavors and Fragrances (IFF) shares fell 3.8%, marking the S&P 500’s weakest performance for the day. The move lower was the latest in a volatile stretch for the stock, which fell sharply last Wednesday when the provider of specialty ingredients reported lower-than-expected fourth-quarter profits and halved its dividend but then recovered toward the end of last week.

Wireless tower operator SBA Communications (SBAC) issued lower-than-expected guidance for full-year revenue, citing slower demand from wireless companies following heightened activity related to the rollout of 5G services. SBA shares dropped 3.8%.

Shares of Henry Schein (HSIC) slid 3.4% after the distributor of dental and health care products reported fourth-quarter profits and revenues that fell short of consensus expectations. A cyberattack on the company’s manufacturing and distribution businesses in October 2023 along with elevated expenses related to acquisitions had an impact on the results.

Diversified power generator and utility firm AES Corp. (AES) reported better-than-expected earnings per share (EPS) for the fourth quarter, but revenue for the period fell short of estimates, and its shares slipped 2.9%. The company is focused on renewable energy projects but faces challenges in its power business.