President Obama warned this afternoon that the economy could head toward a “very deep recession” unless lawmakers agree to raise the debt ceiling soon. Many investors seem to agree: With lawmakers unable to agree on terms of a potential deal, several are cashing out recent gains to sit on the sidelines until they have a clearer sense of where things are headed. The Dow Jones Industrial Average fell 1.1% today, while the Standard & Poor’s 500 was -1.2% and NASDAQ -2%. Media and tech stocks also took a hit with the Dow Jones U.S. Media Index falling 1.5% today. Sony (-3.3%) was hardest hit among Big Media companies followed by CBS (-2.4%), Viacom (-2.1%), Fox (-2%), Liberty Media (-1.7%), Comcast (-1.1%), Time Warner (-1%), Disney (-0.9%), and News Corp (-0.7%). Among the broader field of companies we watch, Pandora (-7.8%) dropped most. Others licking their wounds include Cumulus (-7.1%), Facebook (-6.7%), Netflix (-5%), RealD (-4.6%), Lionsgate (-4%), and Best Buy (-3.6%). A few companies managed to eek out modest gains led by Redbox owner Outerwall (+6.2%) which is still benefiting from the recent disclosure by activist investor Jana Partners that it has bought a big stake in the company and wants changes in strategy that will pay off for shareholders.
Media And Tech Stocks Hit By Concerns About Possible Government Default
What's Hot on Deadline
More From Lieberman
- TV Land Hit By Layoffs As Viacom Consolidates And Looks To Cut Costs
- Networks Still Nagged By Weak Ad Growth As Upfront Market Approaches
- Will HBO Team Up With Apple For Online Service Launch?
- Warner Bros CEO Forecasts More Cost Cutting, Even As Studio Grows
- Netflix Looks At ‘Beasts Of No Nation’ As An Experiment
- Chase Carey: Online Video Services Are A “Big Priority” For Fox