Carnival Corporation CCL shares traded higher on Tuesday amid overall market strength following softer-than-expected October CPI data, which has eased concerns about further Fed rate hikes and lifted discretionary stocks.
The travel and leisure sector may also be up in anticipation of the holiday travel season.
What To Know: The U.S. annual CPI inflation rate fell from 3.7% in September to 3.2% in October, exceeding expectations by economists of a reduction to 3.3%.
The encouraging data has far-reaching economic implications, specifically in terms of interest rates.
As of now, the October CPI data has at least curbed investor worries of future inflation-fighting rate hikes.
However, if inflation continues to show signs of easing, the Federal Reserve may be motivated to cut rates which will allow for companies like Carnival to engage in growth-oriented activities with more ease, including borrowing.
Furthermore, if consumers are feeling less financial strain, they will be able to spend more money on goods and services, such as those offered by the company.
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CCL Price Action: Shares of CCL gained 8.69% to close at $13.89 at the time of publication, according to Benzinga Pro.
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