It's still not business as usual, but bargain hunting helped the stock market recover some losses on the second week of trading since the Sept. 11 attacks. Seven AdMarket stocks were down for the week and 43 rose. Investors swarmed to companies battered in the post-attack selloff, even as many posted warnings that earnings will be hurt by consumer pessimism and attack-related losses. Ad agency stocks showed fewer gains after several analysts revised their ad spending forecasts. Goldman Sachs & Co's Michael Beebe revised estimates from a drop of 4.5% in 2001 and 1.8% growth in 2002 to drops of 9% and 4%, respectively, and Lehman Bros.' Kevin Sullivan lowered his to a drop of 5% to 6% this year and 0% to 1% growth in 2002, vs. a drop of 2.3% this year and 2.5% growth in 2002. Cordiant Communications Group and Primedia, both of which issued earnings warnings, were the worst hit. A 9% drop in ad spending would be the biggest year-on-year decline on record, surpassing an 8.1% decline in 1938.
See printed publication for chart