Entertainment Stocks Mostly Outperform Amid Post-Election Market Decline
Time Warner and News Corp. even see stock gains following better-than-expected earnings reports.
U.S. stocks opened markedly lower on Wednesday as the re-election of President Barack Obama seemed to focus investors' attention on upcoming showdowns between the White House and U.S. Congress.
The downturn also pulled entertainment stocks lower, but most did better than the broader markets.
The Dow Jones Industrial Average was down 1.7 percent as of 10:25am ET. And the broad-based Standard & Poor's 500 index was down 1.8 percent.
At that time, CBS Corp. shares were down 2.3 percent, underperforming the broader stock market. Others did better though than the S&P 500 as Viacom was 1.1 percent lower, and Walt Disney was down 0.9 percent. A stronger-than-expected earnings report saw Time Warner climb 2.5 percent though, and News Corp.'s stock was also up.
Continued concerns about European debt issues were joined by expectations of fiscal showdowns in the U.S. in the coming weeks to drive the markets lower on Wednesday.
The Wall Street Journal said that stock market watchers particularly cited the so-called "fiscal cliff," scheduled tax increases and spending cuts that will kick in on Jan. 1, unless a new compromise is reached between Obama and Congress.