Investors went on a rollercoaster ride on Wall Street Wednesday as the market first soared more than 100 points before dipping back in a late afternoon sell-off, hurting many of the major Hollywood stocks.
With the Dow Jones Industrial Average finishing down 45.06 points, or 0.58%, to 7782.37, Walt Disney Co. — a Dow component — dropped 56¢ to $29.81 while Viacom fell 6¢ to $58.56 after a strong run Tuesday.
News Corp. also edged down 12¢ to $25.12. Some of the smaller stocks in the sector also lost ground, such as AMC Entertainment (down 25¢ to $11.87) and Loews Cineplex Entertainment (down 18¢ to $7.75).
But many other showbiz stocks were up, including Metro-Goldwyn-Mayer (up 62¢ to $16.12), Time Warner (up $1.37 to $84.37) and Tele-Communications Inc. (up 87¢ to $33.93).
The two companies that announced stock buybacks Tuesday were both up: Comcast rose $2.37 to $40.18 while Sinclair Broadcast Group rose 43¢ to $18.93.
The mixed nature of trading in the market was highlighted by the indices, with the Nasdaq up 1.1% but the S&P 500 index down 0.38%.
“Nobody took (Tuesday) as the beginning of a solid recovery. Its shaky,” said one Wall Streeter.
The other sector that performed strongly was the Internet stocks, which many observers believe are the most overvalued. Amazon Com rose $7.92 to $87.87, while American Online rose $3 to $88 and Netscape edged up $1.50 to $22.62.
That is a sign that the market still has room to fall, some observers believe. “This market is not going to bottom until Internet stocks are at one third of where they’re at,” said Sal Muoio, principal of money managers SM Investors.