The mid-week drop in oil prices lifted hotel and cruise ship stocks. Stock market traders are pricing in the rebound in vacation travel volumes when oil prices fall.
Carnival (CCL) posted a big gain yesterday. CCL stock added 11.23% to close at around $28. Hilton (HLT), Marriott (MAR), and Royal Caribbean (RCL) also posted strong gains. Investors may bet on the ceasefire failing to last the declared 2-week period.
In the tech sector, Intel (INTC) traded at a 52-week high. Elon Musk’s SpaceX, xAI, and Tesla (TSLA) will include Intel in its Terafab project. Intel said that it would target the production of 1 TW/year in compute power.
Teradyne (TER) might add to its 11.8% gain from Wednesday. The stock closed at a new high despite posting no news.
Among the stocks moving lower, watch out below for LyondellBasell Industries (LYB). Shares recently closed at a 52-week high. BofA downgraded LYB stock. It opined that the chemical producer’s rally was overdone. Markets already priced in the upside from the geopolitical disruptions.
Workday (WDAY) fell by 6.54%, closing at $119.17. This is near a 52-week low. Investors continued to sell off SaaS (software) firms. WDAY stock trades at a discount with a forward P/E of 12.1 times.
Workday needs to prove to analysts that AI is not degrading its business model. Patient investors might consider SaaS firms like Workday, Salesforce (CRM), and ServiceNow (NOW).
