Cable Whiffs During Big Dow Swing
Volatile Market Punishes Cable Sector
By Mike Farrell -- Multichannel News, 10/10/2008 12:27:00 PM
The Dow Jones industrial average struggled to stay above 8,000 points Friday, experiencing its greatest one-day swing in history (1,018 points) and ending the worst week ever in the market’s 112-year history.
The Dow Jones Industrial Average was down more than 100 points Friday after the most volatile day in its history—the index ranged from a low of 7,882.51 to a high of 8,901.28, a 1,018- point swing. The Dow closed at 8,451.19, down 128 points. For the week, the index was down nearly 1,900 points, or about 18%, the worst performance in its 112-year history.
Cable stocks continued to take a beating—although one cable operator (Mediacom Communications) managed to post a slight gain on Friday. But for the most part, cable stocks followed the market downward.
For cable operators, it wasn’t a pretty picture as Time Warner Cable fell 6.4% ($1.33) to $19.57 each; Comcast dipped 5.8% (95 cents) to $15.36; and Cablevision fell 8% ($1.35) to $15.53 per share. Mediacom, down 34.8% for the week, was the sole gainer on Friday, inching up 16 cents per share to $3.68 each.
Satellite stocks continued to get pounded, with Dish Network shedding nearly 15% ($2.38) to close at $13.71 per share, a 52-week low. DirecTV Group, down 20.9% for the week, closed Friday at $19.59 per share, down 2.5% or 50 cents.
Programmers again took it n the chin with News Corp. dropping 75 cents each (8/1%) to $8.46 per share, Viacom, which earlier in the day reduced its full-year earnings guidance, plunged 17.3% ($3.58 per share) to $17.10 each.
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