What happened
Actions of Walt Disney (NYSE: DIS) traded 4.9% higher at 12:50 pm EST. President Biden’s biggest stimulus checks are getting closer and closer to his final approval, and California lawmakers want to accelerate the reopening of Disneyland and other state theme parks. Together, these forces are raising Casa do Rato today.
And
Last week, two representatives of the state of California introduced a bipartisan bill that would raise theme parks to the “moderate” level of restrictions in Governor Gavin Newsom’s model for a safer economy. Disneyland has been closed under COVID-19 security restrictions since March 2020, and the doors are still locked. If that bill passes state law, Disney and other theme park operators would benefit from the proposed $ 1.9 trillion stimulus in Biden.
Image source: Getty Images.
What now
In the fourth quarter results conference call for November, Disney CEO Bob Chapek was “extremely disappointed that the state of California continues to keep Disneyland closed despite our proven track record” of coronavirus security. The company is eager to reopen all of its entertainment assets and Disneyland stands out as a particularly difficult obstacle. Any progress towards a full or partial reopening should be seen as good news for Disney, so it’s no surprise to see stocks skyrocketing today.