Media stocks felt pain as Wednesday markets shook with uncomfortable earnings and outlook from major retailers reflecting the larger economic downturn.
Target and Walmart, generally considered safe stocks, have reported a major hit due to high transportation costs due to rising gas prices, without any relief. Consumers who are already spending less on something other than groceries find it difficult to afford higher costs.
S&P down 4% – worst slide since June 2020 The Dow plunged more than 1,100 points, and the Nasdaq lost 4.7%.
Investors have been alarmed by the rising inflation that the Fed is trying to control by raising interest rates and the Russia-Ukraine war that is being chanted. The head of the Federal Reserve, Jerome Powell, said WSJ That could be “some pain associated with restoring price stability”. It’s part of it.
Among media shares, Disney fell 4.3% and NBCU’s original Comcast fell 1.7%, with companies in the middle of a week of upfront presentations in NYC. Fox is down 3.4% and Paramount is down 2.4%. Shares of the latter rose 15% on Tuesday after Warren Buffett acquired a large stake in Berkshire Hathaway, a sign of confidence that could not withstand today’s path.
Shares of Netflix shares, which have flopped in recent months due to losing customers, have fallen 7%.