Cable Drags As Dow Drops 419 Points


The Dow Jones Industrial Average fell as much as 500 points in a volatile trading day Thursday, rallying slightly in later hours to finish down 419 points, dragging cable stocks along for the ride.
Investors were skittish after the government said that new jobless claims increased by 9,000 during the week ended Aug. 13 to 408,000, another indication that the overall economy is not improving. That, along with reports that federal and state regulators were looking closely at the U.S. arms of some European banks, fearful of any possible spillover from that continent's recent debt crisis, helped drive the selloff.
The Dow closed at 10,990.58, down 419.6 points or 3.7%.
Cable stocks felt the pain along with the rest of the market, with Cablevision Systems dipping 8% ($1.49 per share) to $17.17; Comcast dipping 4.9% ($1.05 each) to $20.28; Charter Communications down 5.1% ($2.47 each) to $45.98; and Time Warner Cable down 4.1% ($2.64 each) to $62.32 per share.
Satellite stocks were hit hard as well, with Dish Networks falling 5.5% ($1.30 each) to $22.22 and DirecTV down 3.6% ($1.61 each) to $42.71 per share.
On the programming side, Discovery Communications led the decliners, dipping 6.9% ($2.69 each) to $36.47; followed by Time Warner Inc., down 6.2% ($1.89 each) to $28.58; Scripps Networks, down 6% ($2.50 each) to $39.85; News Corp., down 5.3% (91 cents each) to $16.31; Viacom, down 5% ($2.741 each) to $51.59; AMC Networks, down 4.4% ($1.53 each) to $32.96; and Disney, down 2.5% (82 cents each) to $32.55 per share.