Stock markets moved higher on Wednesday, buoyed by positive earnings reports from bellwether stocks that showed signs that the economy might be holding up better than some had feared. The Dow Jones Industrial Average (^DJI -0.23%) and other popular stock indexes were higher by around midday.

2022 has brought new emphasis on stocks in the travel and entertainment industries, as people around the world have sought to break out of their pandemic cocoons and have fun together again. A couple of companies specializing in helping their customers enjoy themselves were in the news Wednesday morning, and although one of them faces ongoing challenges that caused its share price to drop, another gained on outside interest from institutional investors.

Here's why the market is watching Carnival (CCL -2.34%) and Six Flags Entertainment (SIX) today and what it means for long-term investors.

Carnival keeps taking on water

Shares of Carnival initially fell but reversed course to rise 4% just before noon ET Wednesday. The cruise ship operator posted a business update for the fiscal fourth quarter ending Nov. 30 that showed mixed progress in its efforts to get its operations close to their pre-pandemic levels.

Carnival said that it posted an adjusted net loss of $1.1 billion for the quarter, translating to $0.85 per share. The cruise ship company said pretax adjusted operating losses of $96 million were consistent with its previous guidance, citing high fuel prices and unfavorable foreign-currency impacts in the past three months since its last business update.

On key business metrics, Carnival's revenue per passenger cruise day was actually up 0.5% from pre-pandemic results in late 2019, despite the negative impact of future cruise credits issued to certain passengers. Occupancy levels in the fourth quarter were still 19 percentage points below 2019 levels, but they climbed substantially from where they were in the third quarter.

Perhaps most promising was Carnival's positioning for 2023. The company's advanced booked position is above its historical average, even with higher pricing, and customer deposits hit $5.1 billion, which was a record for a fourth-quarter period.

Yet even with these upbeat aspects to the news, the stock price volatility shows that Carnival shareholders still seem uncertain about what the future will bring.

Shareholders go for a ride at Six Flags

Six Flags stock had an even bigger gain, jumping 12% at midday. The amusement park operator got interest from a well-known activist investor with some interesting ideas about how to maximize shareholder value.

Land & Buildings Investment Management believes that Six Flags stock is undervalued, and the activist investor led by CIO Jonathan Litt made its argument for why the stock could see big gains. Litt applauded the strategic moves Six Flags made to reduce attendance in an effort to boost the quality of the visitor experience, and after talking with Six Flags management, he's optimistic that those moves should boost attendance and profits in 2023.

In addition, Land & Buildings, which is a 3% shareholder in Six Flags, believes the company should separate itself into two components. Following in the footsteps of some companies in the casino resort and hotel industry, Litt said that separating out Six Flags' real estate holdings from its operating theme parks could boost the total value of the stock by $11 per share. Moreover, the split could position the operating company for an even better return if Six Flags CEO Selim Bassoul's strategic vision proves successful.

Even after today's gains, Six Flags stock trades about 50% below its best levels early in 2022. Nevertheless, some investors are feeling more upbeat than ever that the amusement park company's future looks bright.