NEW YORK (AP) ¿ The stocks of newspaper companies surged Wednesday on optimism that deep cost cuts will let them benefit from the economic recovery, even as advertising and readers move online.
A report from market research firm TNS Media Intelligence said the rate of decline in overall advertising spending held steady from the first quarter to the second.
Also, early data for the current quarter "hint at possible improvements for some media" because they will be comparing against steep declines a year ago, according to Jon Swallen, senior vice president of research at TNS.Shares of The New York Times Co. rose 94 cents, or 12 percent, to close at $8.82. The stock of Gannett Co., publisher of USA Today and other papers, rose 93 cents, or 10 percent, to $9.99. The E.W. Scripps Co., publisher of 13 daily newspapers, rose 88 cents, or 11 percent, to $8.83. The McClatchy Co., publisher of The Miami Herald and 29 other daily newspapers, rose 5 cents, or 1.9 percent, to $2.66.