Newspaper stocks react to rate cut

CNNMoney.com reports the Fed's move to slash rates again Wednesday had a "mixed" effect on share prices of newspaper companies. Shares of The New York Times Co. were off by 2.6 percent, to $9.82, while shares of Gannett dropped 1.9 percent. The McClatchy Co. was the biggest major newspaper loser of the day, falling 7.9 percent to just $2.60. 

Newspapers face an uphill battle as advertising revenues continue to drop due to the weakening economy. Revenues are declining at an even faster rate "as consumers and advertisers pull back spending." 

The Fed's move to lower rates Wednesday is a clear effort to give the economy a much-needed boost. 

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