The Dow Jones Industrial Average surged 397 points Monday after the federal government said it would back billions of dollars in risky assets at Citigroup. Cable stocks rode the wave of optimism at least for one more day.
In what is becoming a common occurrence, the government agreed to bailout yet another failing bank—this time Citigroup—agreeing to invest $20 billion in the ailing financial institution and guarantee about $306 billion in assets for up to 10 years. The move bolstered the financial sector, led by Citigroup which surged 58% on Monday.
Cable stocks performed strongly, led by Cablevision Systems, up 11.5% ($1.41 each) to $13.66 per share. Next was Comcast, up 8.6% ($1.21 each) to $15.28, followed by Time Warner Cable, up 8.1% ($1.40 each) to $18.76 per share. Rounding out the gainers was Mediacom Communications, up 23.5% (47 cents each) to $2.47. Charter Communications was down 1 cent per share (4.6%) to 21 cents each.
Satellite TV stocks had a good day, with DirecTV Group up $1.93 per share (9.7%) to $21.94 and Dish Network up 79 cents each (8.8%) to $9.80 per share.
Programming stocks also appeared to fare well. News Corp. rose 70 cents each (11%) to $7.08 and Viacom rose $1.12 each (7.6%) to $15.78 per share.