Street ended sharply lower yesterday as weak earnings reports from media companies stirred fears that more viewers are ditching cable TV, dragging the sector to its worst two-day loss since the financial crisis.
The Dow Jones industrial average fell 0.69 per cent to end at 17,419.75 and the S&P 500 lost 0.78 per cent to 2,083.56. The Nasdaq Composite dropped 1.62 per cent to 5,056.44, its biggest one-day tumble since early July.
Viacom fell 14.22 per cent to its lowest in almost four years after reporting lower-than-expected quarterly revenue due to weakness in its cable TV business. Walt Disney was off 1.79 per cent and down for a second session after it lowered profit guidance for its cable networks unit on Tuesday.
In other earnings-driven stock moves, Tesla fell 8.88 per cent and Keurig Green Mountain slumped as much as 29.75 per cent after reporting disappointing numbers.