There are important changes afoot with travel-market giant Norwegian Cruise Line (NYSE:NCLH). Reportedly, the company just updated its global protocols related to health and safety. Starting tomorrow, Norwegian is removing all requirements for Covid-19 testing, masking and vaccination. There wasn’t an immediate move in NCLH stock this morning, but the shares headed higher after a while and currently sit up around 3% for the day.
Norwegian Cruise Line could almost be viewed as a barometer for America’s progress in recovering from Covid-19. If Norwegian is easing restrictions, that’s a great sign for the battle against the pandemic overall.
Traders might wonder whether all of this is related to President Joe Biden’s declaration that the Covid-19 pandemic is “over.” Is Norwegian Cruise Line taking a cue from the president by easing certain restrictions?
It’s hard to know for certain. What we do know is that Norwegian Cruise Line intends to continue following the travel guidelines set by the destinations the company’s ships visit. So, passengers and crew members could still be subject to local mask mandates and other requirements.
What’s Happening With NCLH Stock?
Since Norwegian is preparing to ease up on its health protocols starting tomorrow, one might assume that NCLH stock should be sailing ahead today. However, market moves aren’t always so obvious or logical.
Norwegian shares did move into the green this morning, though it took a little while. Could there be a bullish follow-through? It’s possible, though some traders are probably waiting to see if the easing of pandemic-related protocols will have a significant financial impact on Norwegian Cruise Line.
In any event, both traders and non-traders have something to celebrate today. Outside of the financial markets, many passengers will at least get to enjoy cruises with fewer safety-related restrictions.
In this vein, Norwegian Cruise Line President and CEO Harry Sommer seemed to express a sense of relief. He observed: “Many travelers have been patiently waiting to take their long-awaited vacation at sea and we cannot wait to celebrate their return.” Given some time, the trading community may decide to put NCLH stock on its itinerary, setting it on a course for much higher prices.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
