Sector Snap: Media Companies Move Higher

Interpublic Group of Cos. said at the Palm Beach, Fla.-based conference that advertisers are still spending as expected, according to a client note by Bear Stearns' Alexia Quadrani. The New York-based advertising and marketing services provider also remained confident that its diverse operations and online investments will provide a buffer should economic conditions start to weigh on budgets.

Interpublic Group's stock gained a penny to $8.09 in afternoon trading.

Similarly, New York-based Omnicom Group Inc. said it sees no evidence of tightened spending through February and anticipates growth even if advertising weakness sets in.

"With its largest client accounting for less than 3 percent of revenues and businesses in over 100 countries in dozens of disciplines, Omnicom is well positioned in our view to prosper in any macro climate," Quadrani wrote in a note.

Shares of Omnicom Group, an advertising and marketing company, added 9 cents to $43.38.

In addition, WPP Group PLC reported solid January spending and is optimistic that February results will be just as good. While the London-based advertising company cautioned that budgets may be hurt by economic conditions later in the year, Quadrani said the company's geographic diversity should give some protection against potential weakness in its more mature markets.

The analyst reaffirmed "Outperform" ratings on all three companies.

WPP Group's stock fell 28 cents to $58.56.