Dow Jones Jumps 250 Points as Disney Plans Reopening, Boeing Stock Rises on Layoffs
While the tech-heavy Nasdaq Composite was slumping hard on Wednesday, the Dow Jones Industrial Average (DJINDICES: ^DJI) managed a 1% gain by 12 p.m. EDT. Optimism surrounding the reopening of the U.S. economy appears to be the driving force, although it remains to be seen whether that optimism is warranted.
Shares of Disney (NYSE: DIS) and Boeing (NYSE: BA) contributed to the Dow's rally on Wednesday. Disney put forth plans to reopen some of its parks in July, while Boeing disclosed that it would layoff nearly 7,000 U.S. employees this week in a bid to cut costs.
The pandemic has been a disaster for Disney, which relies on its parks for a significant portion of revenue and profits. Disney closed its U.S. parks in March as the novel coronavirus spread. In Disney's fiscal second quarter, which ended on March 28 and included a couple of weeks of the shutdown, revenue for the parks segment slumped 10%, while operating profit crashed 58%.
Source Fool.com
