The Federal Reserve’s announcement yesterday that it will try to bolster the economy with purchases of mortgage-backed securities contributed to a sense of giddiness among investors in media stocks. CBS, Charter Communications, Comcast, DirecTV, Discovery, News Corp, Time Warner, and Time Warner Cable hit 52-week highs on Friday. The Dow Jones U.S. Media Index, which is up 33% so far in 2012, reached its highest point in at least a decade. And Apple, still enjoying the euphoria around its newly announced iPhone 5, hit an all time high of $691.28. Among Big Media companies, gains were recorded by Sony (+4.4%), News Corp (+1.3%), Time Warner (+0.9%), CBS (+0.5%), and Comcast (+0.1%). The only decliners were Disney (-0.5%) which said yesterday that it would report a $50M write-down as well as softer than expected ad sales for the current quarter, and Viacom (-0.3%) which was downgraded to “equal weight” from “overweight” by Evercore Partners. Today’s biggest gainers in media include McClatchy (+7.6%), Pandora Media (7.3%), and Facebook (+6.2%).
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