You will be redirected back to your article in seconds

Wall Street Quakes: Media, Tech Stocks Hit by Stock Market Plunge

The Dow Jones Industrial Average and other major U.S. stock indices did a swan dive Monday for the second consecutive trading day, putting a dent in most media and tech shares.

The Dow finished out the day down 1,175 points, or a 4.6% plunge in value after hitting a historic high on Jan. 26 of 26,616.7 points. On Monday the Dow was down as much as 1,500 points around 3 p.m. ET before recovering to a loss hovering in the 700-900 point range. But in the final minutes the selloff blew through the 1,000-point benchmark again. That marked the worst loss in the Dow’s history on a total points basis although not on a percentage basis. On Oct. 15, 2008, a the start of the mortgage meltdown and recession, the Dow sank 7.8%.

Monday’s volatility follows a more than 450-point drop on Friday — which marked the biggest one-day drop since the passage of the Brexit referendum fueled investor jitters in June 2016. Even high fliers such as Netflix, Facebook, and Amazon could not avoid the downturn Monday when the major stock indices were in the red from the start of trading.

The NASDAQ dropped 3.8% to close at 6967.53. The S&P 500 was off 4.1% to 2,648.94.

Netflix, which enjoyed an 8% spike after reporting strong Q4 2017 earnings on Jan. 22, fell nearly 5% to close at $254.26. Amazon eased 2.8% to close at $1,390. Facebook fell 4.7% to $181.26. Apple gave up 2.5% to close at $156.49.

Sony Corp. fell 5.8% (closing at $49) on the heels of Thursday’s news that Kazuo Hirai would hand the CEO reins to his deputy, CFO Kenichiro Yoshida, as of April 1.

Disney ($1047.78), Comcast ($39.20), AMC Networks ($48.91), AT&T ($36.63), and Viacom ($31.14) were among the media giants taking a hit of 3%-5% or more. CBS on Friday lost 6% in the selloff but was more resilient on Monday with a 2.4% drop to close at $54.08. Time Warner ($95.35), 21st Century Fox ($35.56) and Lionsgate ($33.15) held the line at losses of 2% or less.

Wall Street observers are pegging the losses to investor concerns about rising interest rates and the potential for inflation to pick up steam in a generally strong economy. There’s also concern that the tax reform legislation passed last month will add significantly to the federal debt load, which will put pressure on imports, exports and on the financial markets.

More Biz

  • Michael Avenatti

    Michael Avenatti Arrested on Bank Fraud and Extortion Charges

    Attorney Michael Avenatti was arrested Monday and is facing federal charges on both coasts of bank fraud, misappropriating client funds, and trying to extort Nike, according to federal prosecutors. Prosecutors in the Southern District of New York allege that Avenatti tried to extract more than $20 million from Nike, and said that if the company [...]

  • Daily Show Viacom

    DirecTV, Viacom Avert Blackout After Marathon Negotiation

    DirecTV and Viacom have agreed on a carriage renewal pact covering a raft of Viacom’s cable channels after a marathon negotiation over the weekend. In a joint statement early Monday, the companies said: “We are pleased to announce a renewed Viacom-AT&T contract that includes continued carriage of Viacom services across multiple AT&T platforms and products. [...]

  • Discovery CEO David Zaslav Sees 2018

    Discovery CEO David Zaslav Sees 2018 Compensation Soar to $129.4 Million

    Discovery Inc. president-CEO David Zaslav is once again making headlines for an enormous compensation package. Zaslav’s 2018 compensation soared to $129.44 million in 2018, fueled by stock options and grants awarded as the longtime Discovery chief signed a new employment contract last July that takes him through 2023 at the cable programming group. Zaslav received [...]

  • Jonathan Lamy RIAA

    Jonathan Lamy Stepping Down From RIAA

    Jonathan Lamy, the Recording Industry Association of America’s longtime executive VP of communications and marketing, is stepping down from his post after 17 years, he announced today. As he put it in an email to Variety, “I started back in 2002, which means it’s been 17+ years, four different RIAA CEOs, three format changes and [...]

  • Fox Layoffs

    Disney-21st Fox Layoffs: TV Divisions Brace for Deep Cuts

    A second day of layoffs has begun on the Fox lot in the wake of Disney completing its acquisition of 21st Century Fox on Wednesday. Longtime 20th Century Fox Television Distribution president Mark Kaner is among the senior executives who were formally notified with severance details on Friday morning. 21st Century Fox’s international TV sales [...]

  • anthony pellicano

    Hollywood Fixer Anthony Pellicano Released From Federal Prison

    Anthony Pellicano, the Hollywood private eye whose wiretapping case riveted the industry a decade ago, was released from a federal prison on Friday, a prison spokeswoman confirmed. Pellicano was sentenced in 2008 to 15 years, following his conviction on 78 charges of wiretapping, racketeering, conspiracy and wire fraud. He had been in custody since 2003, [...]

  • This image taken from the Twitter

    HBO’s Reaction to Trump’s ‘Game of Thrones’ Campaign

    Everyone wants a piece of the “Game of Thrones” lemon cake. From Bud Light to Red Bull the world of Westeros is open to a lot of brand partnerships, unless you’re using that iconic typeface to push a political agenda. In November of 2018 President Donald Trump unveiled a “Thrones” inspired poster with the words [...]

More From Our Brands

Access exclusive content