The advertising recovery continued to gain traction during the first quarter as TV continued to get the lion's share of growing marketing budgets and newspapers began to see classified advertising improve along with the job market. Increased corporate confidence and growing profits helped business-to-business publications, still climbing out of the hole after three years.
Oil drops, stocks rise: A strong jobs report and news of lower oil prices helped stocks rise late in the week, after a weak start post-holiday. News that oil had dropped under $40 per barrel trumped investors' fears that the strong jobs report will lead the Federal Reserve Board to hike interest rates later this month. For the week, 33 AdMarket stocks were up, 16 were down and Harte-Hanks was unchanged.
Agency and media stocks got little help from news of strong ad spending in the first quarter (see story, right). Interpublic Group of Cos. dropped after Standard & Poor's reaffirmed a glum outlook for the company. Meredith Corp. rose after UBS upgraded the publisher's stock to a "buy" and Walt Disney Co. gained after CEO Michael Eisner said the company could reach a deal with Pixar Animation Studios.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended June 4, based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices May 28. Full data available on Bloomberg terminals under index BAAX.