Banking Fears Drive Dow Downward

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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.

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