Carnival Rebounds After Coronavirus-Suspected Ship Gets All-Clear

Carnival rises after getting the all-clear that a passenger on one of its Italian cruise ships tests negative for the coronavirus.
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Shares of Carnival  (CCL) - Get Report traded higher in premarket trading on Friday after the luxury cruise-line company received the all-clear from Italian health authorities that a passenger on one of its cruise ships tested negative for the deadly coronavirus.

Carnival shares declined Thursday after the company said a potential case of the coronavirus on board a Costa Crociere ship docked at the Italian port of Civitavecchia, near Rome, was being investigated, and that all 7,000 passengers and crew were being quarantined.

Costa Crociere is a unit of Carnival.

However, officials confirmed that the 54-year-old woman, while coming down with an unfortunate bout of the flu, did not, in fact, have the coronavirus. The ship was bound for La Spezia in the Liguria region, with 1,000 crew and 6,000 passengers.

The ship had been in lockdown in Civitavecchia for most of the day Thursday as passengers waited for the initial results of tests carried out by a medical team from Rome's Lazzaro Spallanzani National Institute for Infectious Diseases, according to reports.

Concern that a floating city of 7,000 could potentially be exposed to the killer virus sent Carnival and other cruise and travel industry stocks lower on Thursday. Shares of Royal Caribbean  (RCL) - Get Report also fell after the cruise line announced that three of its Spectrum of the Seas sailings departing from Shanghai were being canceled through Feb. 8.

News of the quarantined Carnival-owned ship came on the same day that the World Health Organization declared coronavirus, which has killed 213 people and infected a further 9,709 others, to be a global health emergency.

Thursday also saw the confirmation of the first U.S. case of human-to-human transmission of the virus.

The coronavirus, which is believed to have originated in the Chinese city of Wuhan late last year, has begun to wreak havoc on the global travel industry, with tour operators and cruise lines both in and outside China canceling trips to and from various Asian cities.

The U.S. State Department raised its travel warning to Level 4, saying Americans shouldn’t travel to China because of the risks from virus.

Shares of Carnival were trading at $44.72 New York on Friday, little changed from Thursday's close. Shares of Royal Caribbean were down 0.6% at $118.99.