Media companies took another beating as the stock market
plunged in early trading Thursday.
The drop followed comments Wednesday by the Federal
Reserve that indicated there was downside risk in the economy and that
financial markets faced further strains because of debts held by countries in
Europe.
The Dow Jones Industrial Average was down more than 300
points in morning trading, knocking almost another 3% off the popular market
indicator.
Among media stocks, Scripps Networks took the biggest
hit, dropping more than 5%. Analysts have been concerned about lower ratings at
its big channels, particularly Food Network.
CBS was off almost 5%.
CBS is the media company
perceived as most exposed to tradition media and dependent on advertising
revenue, which makes it most vulnerable to short-term changes in the economy.
Cablevision, AMC Networks and Viacom were off about 4%
and Comcast was down more than 3%.
