Stock markets grappled with the worst day they’ve had so far in 2012 after a Federal Reserve report suggested that the central bank won’t continue to boost the economy by aggressively buying bonds. The Dow Jones U.S. Media Index was down 1.3% in late afternoon trading, slightly worse than the Dow Jones Industrial Average which was -0.9%. All Big Media stocks were down. Sony, -3.7%, was hit hardest followed by CBS (-2.8%), News Corp (-2.4%), Viacom (-1.6%), Time Warner (-1.4%), Comcast (-1.2%), and Disney (-0.9%). Other media companies down at least 3% include Pandora, Crown Media, Imax, A.H. Belo, Sinclair Broadcast Group, and TiVo. Only a few companies were up including exhibition companies Cinedigm (+1.8%), Marcus (+1.6%), Cinemark (+0.2%), and Carmike (+0.1%). The companies benefited from a growing optimism about the movie business this year following the 23.6% increase in box office sales in the first quarter vs the same period last year. The top performing media company was New Frontier: The pay TV porn provider said last night that it has hired investment bank Avondale Partners to consider strategic options as it evaluates competing takeover bids.
Media Stocks Hit As Investors Weigh Federal Reserve Plans For Economy
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