You will be redirected back to your article in seconds

Showbiz Stocks Hit As Dow Plunges Over 300 Points

The Dow Jones Industrial Average sank more than 300 points on Thursday while the NASDAQ gave up 90 points as two weeks of seesaw activity in the major indices drove investor anxiety.

The Dow’s 334-point drop on Thursday came on the heels of a 272-point plunge on Tuesday followed by a 274-point rebound on Wednesday. Wednesday’s rally came after calming words from the U.S. Federal Reserve regarding interest rates staying low for the rest of this year.

News on Thursday that Germany’s export market had fallen to its lowest levels in nearly five years sparked fears that Europe may plunge back into recession. The Dow dropped nearly 2% to close at 16,659.25. The NASDAQ was down 2% to 4378.34.

Share prices for nearly all of the major media companies took a hit, despite the fact that stocks had surged on the interest rate news and lower domestic jobless numbers. CBS, Discovery and Viacom fell more than 3%. Comcast, Disney, Fox and Time Warner were down more than 2%. Netflix weathered the storm better than most, with a 1.1% drop, to close at $461.62.

Media companies have penned a lot of their future growth on foreign markets, so even though U.S. economic news has been promising, the uncertainty in Europe could imperil their opportunities for expansion. Globalization has goosed the share prices of the Disneys, Time Warners and Viacoms of the world, but that interconnectedness breaks both ways.

“As the U.S. has slowed down, Europe has become a more important source of growth,” said Tony Wible, an analyst with Janney Montgomery Scott. “Every company has its own unique issues, but the common thread is what’s happening across the globe.”

The correction may have been a long time coming, Wible argued. “There was a big run up and we need to give off some steam to get the stocks to where they need to be,” he said.

The markets have been noticeably choppy since the start of this month. Despite the a sense that the U.S. economy continues to improve, the major congloms have acknowledged recent softness in advertising sales — a sign that marketers are still hedging their bets.

Popular on Variety

More Biz

  • Barron HiltonBarron Hilton 1990

    Famed Hotelier Barron Hilton Dies at 91

    Barron Hilton, a famed hotelier who helped expand the Hilton Hotels empire and a founding owner of the Chargers NFL football team, has died, the Conrad N. Hilton Foundation announced. He was 91. “Today the world of hospitality mourns for one of the greats. Barron Hilton was an incredible family man, business leader and philanthropist. [...]

  • Patrick Whitesell and Ari Emanuel WME

    Endeavor Targets Sept. 27 for Stock Debut, IPO Video Tells Company's Origin Story

    After years of preparation, Endeavor is set to make its formal Wall Street debut on Sept. 27, when its stock will begin trading on the New York Stock Exchange. Endeavor has targeted Sept. 26 for the final pricing of its shares. The stock will trade publicly the following day. Earlier this week, Endeavor said its [...]

  • Netflix - Apple TV

    Netflix Stock Drops After CEO Acknowledges 'Tough Competition' Coming From Disney, Apple

    Netflix shares fell as much as 7% Friday to a nine-month low, coming after CEO Reed Hastings commented that the November launches of Disney Plus and Apple TV Plus will introduce a “whole new world” of competition. Hastings, speaking at the Royal Television Society conference Friday in Cambridge, England, said, “While we’ve been competing with [...]

  • Charlie Rose Sexual Harassment

    Charlie Rose Sued for Sexual Harassment by Longtime Makeup Artist

    A makeup artist who worked for Charlie Rose for 22 years has filed a sexual harassment lawsuit, accusing the former CBS and PBS host of years of unlawful behavior toward female employees. Gina Riggi alleges that Rose was verbally abusive with her and would often make derogatory comments about her weight. She also alleges that [...]

  • Rob Stringer

    Sony Music Chief Rob Stringer on Sustaining Growth and Recovering From the 'Dark Times'

    The Goldman Sachs Communacopia conference, now in its 28th year, gives top executives at major companies the opportunity to make their case to investors — and the Goldman analysts the opportunity to keep things on the up and up. While the analysts don’t necessarily grill the executives, they don’t lob softball questions either. That was [...]

  • Frank Grillo'Avengers: Endgame' Film Premiere, Arrivals,

    Matt Phelps Tapped as President of Joe Carnahan, Frank Grillo's Warparty

    Frank Grillo and Joe Carnahan’s Warparty productikon banner has appointed Matt Phelps president of the company. Phelps will head the Los Angeles office and be responsible for overseeing all film and television projects. “We searched long and hard to find the right fit for Warparty and felt that Matt embodied everything that we were looking [...]

  • Jack Gilardi, Longtime ICM Partners Agent,

    Jack Gilardi, Longtime ICM Partners Agent, Dies at 88

    Jack Gilardi, a longtime ICM Partners agent who represented such stars as Burt Reynolds, Sylvester Stallone, Jerry Lewis, Charlton Heston and Shirley MacLaine, died Thursday at his home in Los Angeles. He was 88. Gilardi was known for his gentlemanly style, love of the Los Angeles Dodgers and his skill at representing top actors. He [...]

More From Our Brands

Access exclusive content