Media Stocks Join Market Swoon After Fed Chief Says It Might Reduce Stimulus Effort

This was the market‘s worst day since 2011, with the Standard & Poor’s 500 -2.5% and the Dow Jones Industrial Average -2.3%. Traders became jittery after Federal Reserve Chief Ben Bernanke said that the economy might be strong enough for the agency to pull back on its purchase of bonds, part of its strategy to stimulate spending. Media companies felt the chill wind, with the Dow Jones U.S. Media Index falling 2.9%. Disney, -3.7%, was hardest hit among Big Media companies. It was followed by Comcast (-3.3%), CBS (-3.0%), News Corp (-3.0%), Time Warner, (-2.7%), Viacom (-2.4%), and Sony (-2.2%). Other media companies that suffered today include LIN TV (-6.6%), Cinemark (-5.0%), Pandora Media (-4.7), Sinclair Broadcast Group (-4.4%), Best Buy (-3.9%) and Netflix (-3.8%). The handful that gained ground today included RealD (+0.7%) and Carmike (+0.5%).

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