Could Star Wars make Dow hit 20,000 points?
- The Dow Jones Industrial average is agonizingly close to hitting 20,000 points for the first time ever, and is thus, understandably attracting the interest of stock investors.
- While the Dow is still some 150 points below 20,000, there is a possibility that the release of the new Star Wars movie, Rogue One, could help rocket it there.
Rogue One vs The Force Awakens
Even if Star Wars: Rogue One manages to rake in 55% of the income which Star Wars: The Force Awakens produced in 2015, it would still be the biggest movie of this year.
How can Star Wars boost the Dow?
- So how can Star Wars: Rogue One, which is due for release on Friday, boost the Dow?
- The film will be distributed by Walt Disney, which is a component of the Dow.
- While Walt Disney stocks haven't been all that well off in 2016, huge box office numbers could cause the stocks to have a major turn around, thus boosting the Dow.
The amount of increase needed in Disney stock prices
The value of Walt Disney stocks, which closed at $104.39 on Thursday, would need to increase by $22 for Disney stocks to boost the Dow to 20,000 points.
Can Star Wars actually do it?
- While in theory it is possible for Star Wars: Rogue One to rocket the Dow to 20,000 points, the practicalities are more complex.
- The popularity of Rogue One will depend on the lasting appeal of the Star Wars franchise.
- Furthermore, Star Wars: Rogue One needs to earn 30-40% more of what is being expected of it for it to boost the Dow to 20,000.