PxPixel
Big Media, Cable Hurt in Stock-Market Dive - Broadcasting & Cable

Big Media, Cable Hurt in Stock-Market Dive

Stock market gives back Friday's gain but many broadcasters relatively unscathed.
Author:
Publish date:

As many broadcasters escaped the worst of the downdraft, the stock market took another tumble Monday, giving back Friday’s gain and continuing the see-saw volatility that stretches back to Sept. 15.

The Dow Jones Industrial Average fell 372.75 points to close at 11,015.69. That’s a steep 3.27% drop versus Friday’s 3.35% gain.

On Monday, the price tag of the federal-government bailout of U.S. credit markets spooked investors and led to a spike in oil prices, since the bailout looks to weaken the U.S. dollar, in which oil contracts are denominated.

Big-capitalization media/entertainment stocks were hard-hit. Rupert Murdoch-led News Corp., parent of Fox Broadcasting, declined 6.8%. Time Warner dropped 4.5% and Disney fell 4.3%.

Stocks that are interest-rate-sensitive got punished, including cable-system operators that carry heavy debt loads. Cablevision Systems fell 6.4%, Comcast class A dropped 4.0 and Time Warner Cable slipped 3.7%.

Basic-cable-network operators, which shoulder less debt, declined to a lesser extent, such as Crown Media, parent of Hallmark Channel, which was off just 0.38%.

In broadcasting, Nexstar Broadcasting Group actually rose 2.7% and CBS fell just 1.9%. However, Entravision Communications’ 9.9% plunge and Gray Television’s 5.4% decline exceeded those of the broad stock market.

Related