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Media stocks took a beating as the stock market lost ground amid concerns about the economy.
While the Dow Jones Industrial Average lost 2.19% of its value dropping 265.87 points to 11,866, shares of many companies in the broadcasting and cable businesses showed bigger losses.
Scripps Networks Interactive slid nearly 6% and Viacom dropped more than 5%. Showing losses in the 4% range were Comcast, News Corp. and Cablevision Systems. Declining more than 3% were Walt Disney Co., CBS and Time Warner .
The declines come as media companies are expected to report good second quarter earnings. CBS on Tuesday reported that its earnings more than doubled. Nevertheless its stock dropped $1 a share to $26.28.
The overall market has fallen for eight consecutive days. On Tuesday it plunged more than 100 points in the last hour of trading. The declines came amid wrangling in Washington over the federal government's debt ceiling and continued even after President Obama and Republicans in the House of Representative came to an agreement on spending cuts. Pundits said the market was now focused on the dim growth prospects in the U.S. going forward.
