Nearly every agency company was down or flat, as investors worried that advertisers will cut budgets as their profits stumble. Leap Group--which announced improved earnings this month--was the only gainer, rising 4.76%, up 12 cents to close at $2.75. Lois USA, Cordiant Communications Group and Saatchi & Saatchi were unchanged and True North Communications dropped 0.28%, losing six cents to close at $22.12.
Hardest hit was Interpublic Group of Cos., which lost 7.53%, dropping $4.06 to $49.88; it was followed by Grey Advertising which dropped 7.32%, closing down $24 at $304. Think New Ideas--which faces shareholder lawsuits filed Monday--lost 44 cents to close at $5.94, a 6.86% drop.
Among the major holding companies, WPP Group's American Depository Receipt shares dropped 6.85%, losing $3.12 on the Nasdaq exchange to close at $42.50; and Omnicom Group dropped 4.17% to close at $43.12. Young & Rubicam lost 5.07%, dropping $1.44 to close at $26.94.
Copyright October 1998, Crain Communications Inc.