Dreary Day for Cable

Dow plunges, cable stocks decline

By Mike Farrell, Multichannel News -- Broadcasting & Cable, 10/3/2011 5:26:05 PM

The Dow Jones Industrial Average plunged 258 points on Monday, beginning the fourth quarter on a low note, and cable stocks were pummeled along with every other sector, with some stocks dipping more than 7% for the day.

The Dow closed at 10,655.30, down 258.08 points and setting a new low point for the year. Once again, worries concerning European debt pounded the index, offsetting any optimism from better than expected manufacturing and construction spending domestically.

Cable stocks for the most part followed suit, although there was one glimmer of hope amid the carnage -- Time Warner Cable rose 0.2% (12 cents) to $62.79 each.

The rest of the MSO sector wasn't as lucky. Charter Communications led the losers in the MSO sector, dropping nearly 7% ($3.17) to $43.67, followed by Cablevision Systems, down 4.5% (71 cents) to $15.02, and Comcast, down 2.2% (45 cents) to $20.36 each.

Satellite stocks were pounded as well, with Dish Network losing 5.7% ($1.43) to $23.62 and DirecTV dropping 4% ($1.67) to $40.60.

Programming stocks also took it on the chin, with Liberty Capital down 7.6% ($5.01) to $61.11; Viacom down 5.1% ($2.45) to $45.91; Liberty Interactive down 4% (59 cents) to $14.17; Disney down 3.9% ($1.16) to $29; Time Warner Inc. down 3.4%($1.01) to $28.96; Liberty Starz down 3.4% ($2.08) to $61.48; Scripps Networks down 2.7% ($1.02) to $36.15; News Corp. down 2.5% (39 cents) to $15.21; and Discovery Communications down 2.4% (89 cents) to $36.73.