Even Disney Can’t Shake Wall Street’s Recession Fears About Hollywood Stocks | Analysis

Economic signals indicate the economic downturn is unavoidable, roiling stocks in a rout that sent Dow Jones index member Disney to an ”unbelievable“ $110 price

The 1,000-point nosedive in the Dow Jones industrial average is poised to continue on Monday on fears the economy is skidding into an unavoidable recession, with entertainment stocks among the industries hit hard as analysts expect consumers to tighten their belts. Even the venerable Disney stock has been hit hard, which has one analyst seeing a harbinger of “doom and gloom.”

Investors worry a significant drop in consumer spending would hurt Hollywood as TV advertisers slash budgets, families cancel summer theme park vacations and subscribers cancel streaming services to save cash. Exacerbating any potential recession-related drop is that the industry has already been under significant pressure, with one key barometer — the S&P 500 Media & Entertainment index — down 33% from its all-time high last August.

Become a member to read more.

Joe Bel Bruno

Joe Bel Bruno is TheWrap's Editor at Large, Business. He most recently served as the Founding Editor of the business news site dot.LA. He was previously the Managing Editor of Variety, and served as Deputy Business Editor and later Deputy Entertainment Editor at the Los Angeles Times. Bel Bruno also ran markets coverage for The Wall Street Journal. Before that, he was an award-winning reporter at the Associated Press in New York, and held senior posts in London and New York for Knight Ridder Financial.