Cable stocks surged Thursday, riding the wave of one of the biggest
single-day increases in the history of the Dow Jones Industrial Average, as AOL
Time Warner Inc. led the pack with an increase of nearly 14 percent.
The Dow surged 402.04 points -- its second-largest single-day gain -- to
finish at 9,917.46 after Dell Computer Corp. reaffirmed its quarterly earnings
outlook and Alcoa Inc. beat earnings expectations.
The technology heavy NASDAQ -- coming off a 201-point drop in the past three
days -- nearly erased that deficit, gaining 146.31 points to end at 1,785.11,
its largest one-day point gain in three months.
AOL Time Warner stock rose $4.55 per share Thursday to close at $39.70. Other
big gainers included AT&T Corp. (up $1.47, or 7.3 percent, to $21.50),
Adelphia Communications Corp. (up $2.31, or 6.6 percent, to $37.44), Comcast
Corp. (up $1.23, or 3.1 percent, to $40.73) and Cox Communications Inc. (up
$1.30, or 3.1 percent, to $43.50).
The gains virtually erased declines from Tuesday, when MSO stocks fell
between 3 percent and 9 percent.
Charter Communications Inc. gained 13 cents per share to close at $20.06, and
Cablevision Systems Corp. finished at $67.25, up 25 cents.
Classic Communications Inc. lost 41 cents per share to close at 78 cents, its
first time below $1 per share since going public at $25 in December 1999.
Insight Communications Co. Inc. was down 81 cents to $25 per share, and Mediacom
Communications Corp. was unchanged at $18.44.
Interactive-television stocks -- pummeled last week as investors worried
about slow deployment rates of new services by MSOs -- gained significantly
Thursday, after UBS PaineWebber Inc. analyst Tom Eagan initiated coverage of the
Gemstar-TV Guide International Inc. led the pack, rising 22 percent, or $5.13
per share, to $28.50. OpenTV Corp. rose $1.38 to $8.06; SeaChange International
Inc. was up $2.06 to $12.44; Liberate Technologies was up 53 cents to $7.94; and
TiVo Inc. was up $1.09 to $5.13.
On the programming side, Viacom Inc. was up $2.89 each to $43.35 and News
Corp. rose $2.50 each to $31.20. Crown Media Holdings Inc. increased 50 cents to
$19.38; The Walt Disney Co. was up 98 cents to $28.08; and USA Networks Inc.
rose 13 cents to $23.13.