Carnival Shares Continue to Slump

Shares of Carnival Corp. were down $1.69, or 4.89 percent, to $32.85 in pre-market trading early Wednesday morning. The stock has been steadily falling since the Miami-based company reported a 30 percent drop in profits in the third quarter and poor guidance of what's ahead.

The results highlighted a lingering issue for the company following a number of mishaps at sea. The stock took a dive Tuesday just moments after the opening bell when it started at $35.44 - reached its lowest point of $34.31 - and then rallied to close the day at $34.54.

The downward spiral seems to have impacted the company's competitors. Royal Caribbean Cruises Ltd. (NYSE: RCL) was down 79 cents, or 2.04 percent, to $38.66 in pre-market trading. Norwegian Cruise Line (NASDAQ: NCLH) closed Tuesday down 3 percent at $31.94.

Following the earnings report, Bank of America/Merrill Lynch downgraded Carnival (NYSE: CCL) from buy to neutral. Morgan Stanley followed suit by downgrading the company from equal weight to underweight.

Source: South Florida Business Journal