U.S. Stocks Fall as Media Shares Tumble on Viacom, Fox Results

[Purveyor]

U.S. stocks declined for the fourth time in five sessions, as results from Viacom Inc. and Twenty-First Century Fox Inc. disappointed, sending media shares toward the biggest two-day loss since 2008.

Viacom and Fox slumped at least 11 percent after joining a parade of media companies reporting disappointing results. CBS Corp. fell 4.1 percent. Keurig Green Mountain Inc. plunged 29 percent after cutting its sales and profit forecasts. Transocean Ltd and Michael Kors Holdings Ltd. added at least 7.3 percent after posting better-than-estimated results.

The Standard & Poor’s 500 Index lost 1 percent to 2,079.36 at 12:03 p.m. in New York, after adding 0.3 percent on Wednesday. The Dow Jones Industrial Average fell 143.01 points, or 0.8 percent, to 17,397.46. The Nasdaq Composite Index decreased 1.9 percent, the most almost a month.

“Some of the action you’re seeing today are $50 to $100 billion companies dropping 8, 9, 10 percent,” said Walter Todd, who oversees about $1.1 billion as chief investment officer for Greenwood Capital Associates. “The reactions you’re seeing in the marketplace are just very violent for companies reporting earnings, sometimes to the upside, sometimes to the downside.”

Nvidia Corp. is among 14 companies reporting earnings today. About 85 percent of S&P 500 members have already released figures, with three-quarters beating profit estimates and half topping sales projections. Analysts now call for a 2.8 percent drop in second-quarter earnings, shallower than July 10 estimates for a 6.4 percent fall.
Media Selloff

Media shares were battered for a second day, with quarterly earnings at CBS and Fox marked by shrinking U.S. ad sales and profits propped up by stock buybacks. Viacom, owner of MTV, Nickelodeon and Comedy Central, posted a third-quarter revenue decline that was wider than analysts had forecast.

more...

http://www.bloomberg.com/news/articles/2015-08-06/u-s-stock-index-futures-are-little-changed-amid-earnings-deals

[Orrex]

1. We can be sure...

that Wall Street and, if necessary, Congress will act fast to make sure that the important shareholders are protected, no matter how many employees or tax dollars it takes.

[onenote]

2. More likely, you'll see a buyer for Viacom soon

Possibly CBS (which spun Viacom off and probably regrets it).