NEW YORK — Showbiz stocks sagged along with the overall market Thursday, although Polygram, which is being bought by Seagram, bucked the trend by rising 1.5% to close within striking range of its acquisition price.
Otherwise, the entertainment sector’s downturn was in line with the Dow Jones Industrial Average’s drop of 249.48 points, or 3.2%, to 7,615.54.
Wall Streeters attributed the broad slide to concern over the president’s plight following the delivery to Congress on Wednesday of the long-awaited report from Whitewater independent counsel Kenneth W. Starr.
The prospect of Congress’ deliberating impeachment proceedings merely added to market turmoil caused by the troubled economies of Asia and Russia.
Reversal of ‘Greenspan rally’
Thursday’s decline, in conjunction with the Dow’s 155.76 retreat on Wednesday, more than reversed the “Greenspan rally” recorded Tuesday, when the Dow advanced a record 380.53 points in response to the Federal Reserve chairman’s amenability to an interest-rate cut.
Entertainment stocks have also been affected recently by earnings concerns and, in the case of Walt Disney Co., a lowering of estimates by Wall Street analysts (Daily Variety, Sept. 10).
Disney continued its slide Thursday, dropping 75¢ to close at $27.06, while Seagram gave up 94¢ to close at $31.06.