Agencies stocks rocket on news of interest-rate cut

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Agency stocks recovered their oomph along with the stock market, which had its third-largest one-day point gain in history after the Federal Reserve Board again cut interest rates. The Dow Jones Industrial Average closed up 330.581, at 8,299.36, a 4.51% increase.

Most agency stocks were up, except for True North Communications, which lost 2.56%, down 50 cents to close at $19, and Grey Advertising, which was down $5 to $272, a 1.81% loss. Cordiant Communications Group, parent of Bates Worldwide, and Lois USA were was unchanged at $8.75 and $8, respectively.

Biggest gainers were CKS Group and Think New Ideas, both hit hard in the previous downturn. CKS was up 20.33%, gaining $3.12 to close at $18.50; Think New Ideas was up 13.04, gaining 75 cents to close at $6.50.

Among the major holding companies, Omnicom Group was up 9.41%, gaining $4 to close at $46.50; WPP Group American Depository Receipt shares were up 5.35%, gaining $2.38 to close at $46.75; and Interpublic Group of Cos. rose 4.57%, up $2.25, to close at $51.50. Young & Rubicam also rose sharply; it gained $1.38 to close at $23.62, a 6.18% gain.

Copyright October 1998, Crain Communications Inc.

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