Media stocks drop more than the market as a whole

Stocks fell across the board Thursday in the worst day of trading since 2008. The drop was fueled by a global credit crisis and a weak U.S. economic recovery, with the expectation that Friday’s jobs report will add to the worries. The Dow fell 4.3 percent, the S&P 500 fell 4.8 percent, and the Nasdaq fell 5.1 percent. Most media stocks took a larger hit than the market as a whole.

“Many stocks follow economic expectations up and down. A few, like hard metals, do better in a down market. But newspapers’ fortunes vary up and down even more than the economy itself,” says Poynter media business analyst Rick Edmonds.

Newspaper Company Stock Prices August 4, 2011
% change from opening to close
A.H. Belo -3.48%
Gannett -5.59%
Journal Communications -5.94%
Lee Enterprises -15.96%
McClatchy -9.66%
Media General -2.93%
New York Times -7.56%
E.W. Scripps -5.62%
Washington Post -6.21%
Source: Yahoo Finance

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  • Poynter

    It’s really news media companies — mostly newspaper companies, some of which also own TV stations. I didn’t include online-only companies like AOL or Yahoo or primarily broadcast companies. I thought about a headline that said “Newspaper stocks drop more than the market as a whole” but since some of these companies are broadcasters and/or very active on the Web, I went with the broader “media.” –Julie

  • John Navin

    So, when the headline says “Media stocks” what we’re talking about is old media, right?