After several days of gloom, the Dow Jones Industrial Average rallied strongly on Tuesday and took cable stocks along for the ride.
The Dow, pounded in recent days, rose to its second highest single-day point gain in history, adding 889 points on Oct. 28 to end at 9,065.12, up 10.88%. The gain comes after the market lost a collective 642 points last week, and was second only to the 936-point gain on Oct. 13, which came after eight straight days of losses.
Investors, who had appeared to be putting their money in more conservative instruments in the past several weeks, started to make riskier bets in anticipation of an expected interest rate cut on Wednesday by the Federal Reserve. As a result, stocks in previously battered sectors like retail (Home Depot), aerospace (Boeing) and telecommunications (AT&T) reported double-digit percentage gains in their stocks prices.
Cable stocks enjoyed a similar run, with all of the major cable systems operators reporting gains.
Comcast, which is scheduled to report third quarter earnings tomorrow morning, had the biggest bump, rising 24.5% ($3.34 per share) to $16.96 per share. Cablevision Systems was next, up $1.16 each (8.1%( to $15.44 and was followed by Time Warner Cable, up $1.11 each (6.2%) to $19.12 each; Charter Communications, up 3 cents (8.1%) to 40 cents each; and Mediacom Communications, up 44 cents (14.6%) to $3.45 per share.
On the satellite TV side, DirecTV Group had the most dramatic gains, adding $2.83 per share (15.8%) to close at $20.78 per share. Dish Network reported a gain of 76 cents each (up 4.9%) to $16.38 per share.
Even the programming sector, battered by concerns over the sluggish advertising market, got a reprieve on Tuesday. News Corp., down more than 60% for the year, gained $1.38 per share (17.5%) on Tuesday to close at $9.26 each. Viacom, troubled by the sluggish ad market and debt covenant woes at its largest shareholder, closed at $19.51 per share on Tuesday, up 80 cents each or 4.3%. Rounding out the sector was The Walt Disney Co., up $2.54 per share (11.9%) to $23.91 each; Scripps Networks Interactive, up $4.75 each (22.2%) to $26.16 per share; and Outdoor Channel Holdings, up $1.01 per share (15.1%) to $7.69 each.