Cable stocks rallied Thursday, taking back some of the big losses over the past few days as they rode a positive wave spurred by a 273-point rise in the Dow Jones Industrial Average.
The Dow finished the day at 10,172.60, up 273.35 points as rising optimism for global economic growth emboldened investors. It was the first time the index cracked the 10,000-point mark since June 3 and was the biggest one-day increase since May 27.
That optimism spread to the cable sector, which endured a stiff decline last Friday as the Dow endured a 300-point drop. No sector was spared last Friday - MSO stocks declined 3.2%, Satellite stocks were down 4.6% and programmers dipped 3.6% that day.
But just as last Friday's plunge dragged the cable sector with it, cable stocks appeared to rise with the tide June 10.
Among the biggest gainers on the MSO side were Cablevision Systems, up 5.5% ($1.22 each) to $23.37 per share; Mediacom Communications, up 4.7% (31 cents) to $6.74; Comcast, up 66 cents (3.8%) to $18.07 and Time Warner Cable, up 3.2% ($1.66 per share) to $53.26 each. Cablevision rallied after dropping 5.6% on Wednesday amid reports that it was among the bidders for Bresnan Communications. And Mediacom, which said June 1 that its chairman and CEO Rocco Commisso had made an offer to take the company private, continued on its upward trend.
On the programming side, Discovery Communications led all issues with a 6% ($2.14 per share) increase to $37.98 each. That was followed by News Corp., up 4.5% (67 cents) to $15.49; Time Warner Inc., up 4.3% ($1.29) to $31.54; Walt Disney Co., up 3.6% ($1.17) to $34.11; Scripps Networks Interactive, up 3.1% ($1.35) to $44.98; and Viacom, up 2.4% (86 cents) to 37.38 each.
Satellite TV giants DirecTV and Dish Network also reported gains, with DirecTV rising 2.3% (85 cents) to $38.55 each and Dish increasing 3.8% (77 cents) to close at $20.97 per share.