Sluggish market braces for bigger plunge today
Media and entertainment stocks have been sluggish for months, but things could well take a turn for the worse today.Bearish signs were everywhere Monday despite U.S. markets being closed for the Martin Luther King Jr. holiday. Major plunges in markets in Europe and Asia suggested a boomerang hit Stateside today. Stock index futures pointed to a grim start to the week, possibly a loss of 400 points or more for the Dow. One mark being watched closely is 20%. With a particularly rough session, the market could register a 20% pullback from its peak in October, which would statistically qualify this as a bear market. The current bull market began in 2002. The impact on media congloms was difficult to predict Monday. On Friday, the end of a brutal week, results were mixed as some bargain hunters swooped in, as is typical in such a climate. Time Warner, Disney and News Corp. are all trading near 52-week lows. Viacom, Sony and General Electric are faring slightly better, but all have lost significant ground since 2008 began.