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Weekly Recap: $DNKN, $CCL, $NCLH, $RCL and $DIA

The Good:


Shares of Dunkin’ surged as much as 15% after news broke that the breakfast and coffee mega-chain is in talks to be sold to Inspire Brands, the privately held owner of both Arby’s and Jimmy Johns. In the New York Times article which broke the news, the deal was reported to be valued at $8.8 billion, or $106.50 per share. That represents a 20% premium over Dunkin’s closing price on Friday. The stock, currently valued at $8.4 billion, has risen 38% this year even as the pandemic has disrupted usual Dunkin customer’s routines, causing same-store sales to dip 18.7% in the second quarter. Dunkin has been aided by a continually strong showing in its drive thrus and strategic partnerships.

The Bad:

Cruise Stocks

As the coronavirus continues to rage on, so does the pain inflicted on the cruise ship industry. Each of the three major cruise lines—Carnival, Norwegian and Royal Caribbean—were down nearly 10% today as travel restrictions continue to limit cruise routes. It’s been a ruthless year for these stocks, with Carnival and Norwegian both down over 70% and Royal Caribbean down over 55%. With cases in Europe and the US on the rebound, analysts fear that not even pent-up demand can rescue the major cruise lines. One analyst at Citigroup stated that normal travel interest from pre-2020 will not return to normal levels for several years. Cruise stocks were further dampened by the flailing hopes of a second stimulus package by the US government.

The Ugly:

The Markets At Large

Today, the DOW posted its worst day in almost 2 months, with a nearly 650 point plummet reflecting the precarious state of the world’s economy in relation to the coronavirus. As cases rise across the West, the United States is seeing new case numbers that emphasize the potential for a new wave. Outbreaks in the Sun Belt have launched averages to highs not seen since July’s outbreak—cases across the nation have risen by an average of 68,000 in the last week. Rising cases come in tandem with dimming hopes for a second stimulus package as Democrats and Republicans spar over the terms of a second deal. Stocks in most need of federal help fell between 7 and 10%—notably, airlines and cruise ships, including Royal Caribbean, Delta and American Airlines.

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