News Corp., other media congloms see gains as Dow posts 423-point gain
When Chase Carey speaks, investors listen.A day after the News Corp. chief operating officer declared that the conglom’s stock was “woefully undervalued,” shares shot up 18.09% Thursday, which marked another day of volatility for the major stock indexes. Showbiz ended the day on the upswing, led by News Corp.’s spike that saw shares gain $2.48 to close at $16.19. After sinking 519 points on Wednesday, the Dow Jones Industrial Average was back up over 11,000, closing with a 423.37-point gain. The broader market swing was fueled in part by a better-than-expected report from the feds that the number of people filing for unemployment benefits fell below 400,000 last week for the first time since April. For media stocks, the rise may have been fueled by rating affirmations for News Corp. shares from key Wall Streeters, including Gabelli & Co. and Standard and Poor’s Equity. The seesaw market this week marks the first time in Dow history that it has seen 400-plus point swings for four consecutive days, according to the Associated Press. Given the unpredictable climate, the newly minted AMC Networks picked a good day to unveil its first-ever quarterly earnings report following its spinoff from parent Cablevision that took affect June 30. AMC shares enjoyed a 13.3% gain to close at $34.31, its biggest one-day gain since the stock’s debut. AMC reported better-than-expected advertising sales at its core cablers AMC, We TV, IFC and Sundance Channel. Its second-quarter net income reached $27.1 million, down from $31 million in the year-ago quarter, on revenue of $292 million. Meanwhile, Disney shares returned to plus territory after enduring a 9% hit on Wednesday. Mouse shares were up 1.84% to close at $32.12. Among other biz stocks that caught the market tailwind on Thursday were Viacom ($46.23, up 7.86%), CBS ($24.66, up 6.52%) and Comcast ($20.59, up 4.10%).