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This afternoon, Disney Internet Group (DIG – 5.96) announced plans to eliminate 135 of its work staff. The websites suffering the brunt of the layoffs will be ABC.com and ABCNews.com. This downsize is in addition to the 400 people let go at Go.com, another Internet portal within the Walt Disney (DIS - 31.40) family. This strategic move was initially looked at as favorable, as both DIG and DIS shot up shortly after the announcement.
Since the beginning of the year, DIS has been trading in a sideways range between 29.50 and 33.50. The stock is presently hovering just below its descending 10-week moving average. The stock is also trading just below 4,850 open contracts at the March 32.50 call.