Time Warner, Fox Slide in Media Slump; Home Sales at 8-Year High

Disney (DIS) was leading a sell-off among media stocks in midday trading Thursday after Bernstein downgraded the world's largest entertainment company on declining affiliate fees. Competitors CBS (CBS), Time Warner (TWX), Viacom (VIAB) and Twenty-First Century Fox (FOXA) were all sharply lower. Stocks were deep in the red as better-than-expected housing and manufacturing data reinforced fears the Federal Reserve could pull the trigger on a rate hike in September. Existing home sales jumped 2% in July to its highest level since February 2007. That's the latest strong data out that supports a robust housing recovery. Business conditions in the Philadelphia area improved at a faster-than-expected pace in August. New orders and shipments remained positive, while employment metrics saw a slight increase.