Shows & Panels
Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- American Readiness: Renewable Power and Efficiency Technologies
- Ask the CIO
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- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
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- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- The New Generation of Database
- Reimagining the Next Generation of Government
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
Media stocks buoyant after 'fiscal cliff' deal
Wednesday - 1/2/2013, 12:58pm EST
LOS ANGELES (AP) - Shares of media companies rose Wednesday as fears of an advertising slowdown based on slower economic growth abated somewhat due to a deal to avert the so-called "fiscal cliff."
Movie studio owners could also benefit from a one-year extension of certain film and TV tax credits in the budget deal passed Tuesday.
But analysts said the market's reaction was driven more by relief over the broader agreement over taxes. Without it, TV networks' advertising revenues could have been hurt.
That's because the deal stopped steep income tax hikes on many Americans that would have started this year. Tax increases would likely have hurt consumer spending, which accounts for about 70 percent of U.S. economic activity. And advertising usually tracks economic growth.
"If we went into a recession, people would be concerned about advertising," said Evercore analyst Alan Gould. "The fact that we didn't go off the cliff means advertising demand will hold up a little bit better."
In afternoon trading, media companies' stocks rose faster than the broader market.
_ The Walt Disney Co. shares rose 2.3 percent to $50.93
_ Time Warner Inc. shares gained 3 percent to $49.25
_ News Corp. shares climbed 3.4 percent to $26.38
_ Viacom Inc. shares jumped 5.5 percent to $55.64
_ CBS Corp. shares were up 2.4 percent to $38.95
The Standard & Poor's 500 index gained 1.8 percent, while the tech-heavy Nasdaq composite increased 2.4 percent.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)