Stock prices plunged on Monday, following the move late Friday by Standard & Poor’s to downgrade the debt of the US Treasury. Radio and TV stocks tumbled with the market, as did just about every sector you can think of.
At mid-session the Dow Jones Industrial Average was down more than 300 points – and that was just the beginning. By the closing bell that was well past 600 points and the blue chip barometer was below the 11K mark. The declines were broad-based and volume was heavy. Other major indices, such as the S&P 500 and Nasdaq Composite, were also down considerably.
A handful of broadcasting stocks had been in positive territory at mid-session, but by the end of the day it was unanimous. Every single radio and/or TV stock was down for the day — several by double-digit percentages.
The day’s best performer – or perhaps least bad is a better description – was ACME, which is in the process of selling off all of its TV stations. It was down only 1.3% for the day. The worst performer was Spanish Broadcasting System, down 24.5%.
What will happen at the opening bell on Tuesday? Stay tuned.
RBR-TVBR observation: How low will the market go? Early voting in this week’s RBR-TVBR poll indicates that the largest number of voters, though not quite a majority, believe that we are heading into a double-dip recession.