What does Evergrande have to do with Entravision, Nexstar or Nielsen?
Absolutely nothing. Yet, media stocks were swept up in a decisively down day on Wall Street, fueled by what some are calling the potential collapse of a Chinese property Goliath.
At the closing bell on Wall Street, the Dow Jones Industrial Average sank 614.41 points to 33,970.47 — its worst session since July.
The Nasdaq composite was off 330.06 point to 14,713.90, while the S&P500 fell by 75.26 points, a 1.7% decrease, to 4,357.73.
The big fear: a troubled property market in the People’s Republic of China tied to Shenzen-based China Evergrande Group. In short, it faces what NPR calls “a potentially devastating debt default.” It owes about $300 billion USD and a default could throw the Yuan, and the Chinese economy, into deep uncertainty. Given the vastness of that economy, global impacts could be felt.
There’s also concerns about the delta variant of the COVID-19 virus, which last week claimed the 2021 NAB Show.
As such, The Walt Disney Co. was off $4.86 to $178.61 while Cumulus Media‘s slump on Wall Street continued with a 20-cent dip to $9.89. For peer iHeartMedia, a 65-cent drop to $23.34 was seen on Monday.
Other decliners include Townsquare Media and Audacy, which now has its shares at $3.32.
For a full glimpse of today’s closing stock prices, see the Wall Street Report on the homepage of RBR.com.