The major U.S. stock indexes were mixed Friday morning, with the Dow Jones Industrial Average (DJINDICES:^DJI) holding onto a solid gain. The Dow was up 0.6% at 11:40 a.m. EDT.
In economic news, U.S. inflation ramped up in August partly due to a surge in used vehicle prices. The consumer price index jumped 1.3% from a year ago, and it was up 0.4% from July. The cost of used cars and trucks rose 5.4%, accounting for a substantial portion of the increase.
Walt Disney (NYSE:DIS) stock failed to rally on Friday as the company’s expensive Mulan film faces pressure in China. Meanwhile, bad news related to the 787 Dreamliner failed to prevent shares of Boeing (NYSE:BA) from having a positive day.
Disney faces Mulan headwinds in China
Disney’s parks business was hit hard by the COVID-19 pandemic, but the company’s film business was also seriously disrupted. Disney poured $200 million into Mulan, a live-action adaptation of its 1998 animated film based on Chinese folklore. In normal times, Mulan would have likely been a smash hit in both the United States and China.
But these are not normal times. With major U.S. movie theater chains only recently reopening their doors to guests, a standard movie theater run for Mulan wasn’t going to work. Disney opted instead to offer Mulan to its Disney+ subscribers in the U.S. for an additional $30 fee, with the film set to become available to subscribers without the fee in December.
This strategy will help Disney recoup some costs. In China, Disney has released Mulan to theaters, but controversy surrounding the film could hurt its performance. Social media backlash outside of China over the film being partly filmed in the Xinjiang region has led to calls to boycott Mulan. Inside China, Reuters reported