Bad Market: Newspapers Down Less Than Expected
The good news is relative, of course. Most newspaper companies were down Monday, but less than the stock market average. The New York Times Company's Class A stock was down 3.8% to $14.35 late Monday afternoon, and Gannett's was down 6.6% to $17. McClatchy's stock was up 1.78% to $4.50.
All these figures compare with the stock market in general, where the Dow Jones Industrial Average tumbled 6.98% and the New York Stock Exchange Composite Index fell 8.7% by the end of the day.
Fittingly, in the final analysis, the stock market tanked in part of because of the same trend that has steadily undermined newspapers: the steep downturn in the housing market.
The single biggest area of revenue loss for newspapers has been the real estate classified listings, which turned south over a year ago and never got better.
Now investors -- and the market -- are panicking anew. Congress refused to approve a giant $700 billion bailout for banks pushed to the brink of failure by bad loans -- mostly in the form of sub-prime mortgages.