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Shares in the entertainment industry, from Walt Disney to Comcast to Fox Corp, fell in the early hours of Friday amid a wide market slide following the overnight news that President Donald Trump and his wife Melania had tested positive for Covid-19.
Market watchers said the development raises questions and a lack of clarity about the country’s leadership and next steps in the presidential election campaign.
They also said the Trumps’ infection refocused attention on a possible spike in Covid-19 cases in the U.S. during the winter season, including the possibility of renewed closures, which would affect businesses.
The broad-based S&P 500 stock index shortly after the market opened was trading down 1.4 percent. Many entertainment stocks held up better than the broader market, albeit in early trading.
Shares of Hollywood giant Disney fell 0.7 percent early in the session, while Comcast and Discovery fell 1.1 percent each, and Fox News parent Fox Corp. saw them fall. its shares 1.3 percent. Shares of AT&T, which owns WarnerMedia, fell 0.5 percent and ViacomCBS lost 0.8 percent in value.
But the market crash also sent Netflix shares down 1.8 percent and Twitter lost 1.7 percent of its market value, among others.
Analysts have noted that the novel coronavirus pandemic has affected television ad revenue at media and entertainment giants, although the second quarter is believed to have marked the lowest point. Film and television productions have also been delayed, and movie releases in theaters have been delayed.
