Newspaper shares mostly down after House vote

In a major setback, the House defeated a $700 billion emergency rescue package on Monday, 228-205, despite urgent pleas from President Bush and congressional leaders from both parties to quickly bail out the staggering financial industry.

Gannett Co. was down $1.20, or 6.6 percent, to close Monday at $17.

Media General Inc. lost 55 cents, or 4.3 percent, to $12.15.

The New York Times Co. shed 57 cents, or 3.8 percent, to $14.35.

The E.W. Scripps Co. lost 3 cents, or 0.4 percent, to $7.45.

The Washington Post Co. fell $23.58, or 4.2 percent, to $540.

Shares in McClatchy Co., which said Friday that it had won key concessions from its lenders, gained 8 cents, or 1.8 percent, to $4.58.

In a research note, Edward Atorino, an analyst at the Benchmark Co., said the new agreement "alleviates some financial pressures on McClatchy, but revenues are expected to continue to decline well into 2009, keeping earnings under pressure."

Atorino maintained a "hold" rating on McClatchy, saying its "highly uncertain outlook reduces its appeal for a rating upgrade at this time."