Media Stock Drop Again With Market Fall

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The stock market plunge continued and media companies took another beating.
In morning trading Wednesday, the Dow Jones Industrial Average was down more than 400 points, or 3.57% erasing most of yesterday's 429-point bounce upwards.
Walt Disney Co. was hard hit, dropping more than 11%. Disney announced earnings that looked good to analysts initially late Tuesday. But in reports today, analysts said it appeared that the earnings included revenues at ESPN that were realized in the third quarter that they'd expected in the fourth quarter, dampening their expectations for the rest of the year.
News Corp., which will announced its fourth-quarter and full-year after trading ends, was down more than 3%. The company might have to answer questions about how its phone-hacking scandal will affect its non-newspaper operations.
Also suffering losses were Time Warner, CBS, Scripps Networks and Viacom, all down more than 4%.