The Dow rises 200 points as Disney’s ‘Mulan’ gets into trouble, and the Boeing 787 finds another flaw in the Dreamliner
Major US stock indices were mixed Friday morning, with Dow Jones Industrial Average (DJ indicators: ^ DJI) Hold on to strong gains. The Dow was up 0.6% at 11:40 AM ET.
In economic news, US inflation rose in August, partly due to the rise in used car prices. The CPI jumped 1.3% from a year ago, and up 0.4% from July. The cost of used cars and trucks increased by 5.4%, which is a large part of the increase.
Walt Disney (NYSE: DIS) The stock failed to rise on Friday as the company is so expensive Mulan The movie is facing pressure in China. Meanwhile, bad news about the 787 Dreamliner failed to block shares Boeing (NYSE: BA) From having a positive day.
Disney faces Mulan Headwinds in China
Disney parks business has been hit hard by the COVID-19 pandemic, but the company’s movie business has been seriously disrupted as well. Disney has pumped $ 200 million into Mulan, Which is a direct quote from the 1998 animated film based on Chinese folklore. In normal times, Mulan It would likely be a crushing blow in both the United States and China.
But this is not an ordinary atmosphere. With major US movie chains reopening their doors recently, standard movie theaters are in operation Mulan Will not work. Disney has instead chosen to offer Mulan to Disney + subscribers in the US for an additional $ 30 fee, with the film set to become available to subscribers at no charge in December.
This strategy will help Disney to offset some of the costs. In China, Disney released Mulan To theaters, but the controversy surrounding the film could hurt his performance. A backlash on social media outside of China over the film, which was partly filmed in Xinjiang, led to calls for a boycott. Mulan. Inside China, Reuters reported on Thursday that authorities have asked major media outlets not to cover the film’s release at all.
All of this bodes ill for Disney’s ability to make a profit Mulan. Disney’s stock fell a bit late Friday morning. The entertainment giant’s shares are down nearly 8% since the start of the year.
Another defect of the 787 Dreamliner was found
Last month, Boeing asked airlines to stop a small number of 787 Dreamliners due to two separate manufacturing problems. A third manufacturing case was revealed earlier this week regarding the 787 horizontal stabilizer, although Boeing does not see it as compromising safety.
Late Thursday, another problem with the 787 was revealed after Radio Como News obtained documents detailing a fourth manufacturing problem with the aircraft, this time relating to the vertical tail fin. KOMO stated that excessive gaps could cause stress on the airframe over time, which could threaten safety.
Boeing said in a statement that the problem was discovered in late 2019 and has already been fixed in production. The company determined that the problem did not immediately affect safety and that immediate action was not required. If action is ultimately required, KOMO reports 680 aircraft could be affected.
While these issues may not require a broad shutdown of the 787 fleet, they do further damage to Boeing’s reputation. On top of the problems with the 787, the company is still working with regulators to bring the 737 Max back into the air after two fatal accidents.
Boeing stock prices are up 1.6% late Friday morning despite news of 787. The stock is down more than 50% so far this year.
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