Dow Falls Sharply in Early Trading

Publish date:

The Dow Jones Industrial Average fell more than 450 points in early trading Thursday, wiping out the gains of earlier in the  week and taking cable and satellite stocks along for the slide.
The Dow opened the day down more than 250 points and the sell-off continued as the day progressed, with the index dropping more than 450 points in early trading and rebounding slightly to a 415-point loss before noon.
Investors were skittish after the government said that new jobless 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.
Cable stocks felt the pain along with the rest of the market, with Cablevision Systems dipping 5.6% ($1.05 per share) to $17.61; Comcast dipping 3.7% (78 cents each) to $20.55; Charter Communications down 3.4% ($1.65 each) to $46.80; and Time Warner Cable down 3% ($1.97 each) to $62.99 per share in early trading.
Satellite stocks were hit hard as well, with Dish Networks falling 5.5% ($1.25 each) to $22.27 and DirecTV down 2.4% ($1.04 each) to $43.28 per share.
On the programming side, Time Warner Inc., led the decliners, dipping 5.9% ($1.81 each) to $28.66; followed by Discovery Communications, down 5.8% ($2.26 each) to $36.90; Scripps Networks, down 5.7% ($2.43 each) to $39.92; News Corp., down 4.7% (82 cents each) to $16.41; Viacom, down 4.1% ($2.21 each) to $52.12; and AMC Networks, down 3.9% ($1.36 each) to $33.13; and Disney, down 3.1% ($1.03 cents each) to $32.34 in early trading.