Banking Fears Drive Dow Downward


The Dow Jones Industrial Average sunk 290 points Monday as investors grew increasingly wary of banking stocks, dragging the cable sector down in its wake.
The Dow closed at 7,841.73, a 3.6% drop and the biggest one-day loss since March 2. Poor first quarter results from Bank of America fueled the decline, as BofA shares dropped 24% for the day.
In the cable sector, Cablevision had the largest percentage drop among MSOs, dipping 9.3% ($1.63 per share) to $15.89 each and followed by Mediacom Communications, which fell 8.7% (44 cents) to $4.64 per share. Rounding out the sector, Time Warner Cable dropped 5.3% ($1.52 each) to $27.40 and Comcast closed at $13.93 per share, down 3.8% or 55 cents each.
Satellite TV stocks fared better, with Dish Network down 65 cents (4.6%) to $13.56 per share and DirecTV down 22 cents each (1%) to $24.72 per share.
On the programming side, tiny Crown Media Holdings (parent of the Hallmark Channel) was the only stock to report a gain, rising 14 cents (5.6%) to $2.64 each on Monday. For the rest of the sector, it was an off day but it could have been worse - News Corp. led the decliners, dipping 9% (84 cents) to $8.53 per share and followed by Time Warner Inc., down 5.3% ($1.24 each) to $21.98 per share. Viacom, which was downgraded by Pali Research analyst Rich Greenfield earlier in the day, closed at $19.79 each, down 5% or $1.03 per share. Rounding out the sector was World Wrestling Entertainment, down 4.9% (54 cents) to $10.45; The Walt Disney Co., down 4.7% (96 cents) to $19.42; Scripps Networks Interactive, down 4.3% ($1.17) to $26.09 and Outdoor Channel, down 3 cents (0.4%) to $7.23 per share.