Entertainment Conglomerate Stocks Drop Amid Latest Market Decline
UPDATED: CBS Corp., Viacom, Time Warner, News Corp. and Sony underperform the broader market on Thursday.
NEW YORK - The stocks of U.S. entertainment conglomerates took a big hit again in Thursday trading as U.S. and European markets once again saw a broad selloff amid renewed economic concerns.
All major U.S. stock indices were down sharply. The broad-based S&P 500 finished 4.5 percent lower.
Shares of CBS Corp., the most advertising-dependent Hollywood conglomerate, were down 9.9 percent at $22.46 at the end of the trading day. Also underperforming the broader market were shares of Viacom, which fell 7.4 percent to $42.11, Time Warner's stock, which was down 6.2 percent at $28.58, Sony, which fell 5.5 percent to $20.69, and News Corp., which was down 4.9 percent at $16.19.
Walt Disney's stock traded down 2.5 percent to close at $32.55, outperforming the market.
August has seen wild stock market swings amid renewed economic concerns. Among European market indices, the FTSE in London closed down 4.5 percent Thursday, and the German DAX fell 5.8 percent.
Morgan Stanley analyst Benjamin Swinburne on Thursday said his company's economics team has lowered its U.S. gross domestic product growth forecast. His U.S. advertising forecast calls for a 3.2 percent gain this year and 4.1 percent growth in 2012. "Admittedly, visibility into 2012 advertising growth is low today, while current trends remain strong at the national level and stable but modest locally," he wrote in a report.