Omnicom Group Inc. (NYSE: OMC)
Omnicom was off to a relatively normal day in the market today. On the opening bell, the stock found itself well into the green, where it has been climbing since. That is, until minutes ago, when it started to spike downward. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to OMC moving forward.
What We’re Seeing From OMC
As mentioned above, Omnicom Group was off to a relatively strong day today. The stock started the day off in the green. From there, it continued to run throughout the first half of the trading session. However, minutes ago, we saw a reversal that led to a high momentum spike downward. Currently (12:47), OMC is trading at $83.47 per share after a loss of $2.58 per share (3.00%) thus far today.
Why The Stock Is Falling Apart
As usual, as soon as we noticed that OMC was taking a dive, the CNA Finance team went to work to see exactly what was causing the movement. It didn’t take long to uncover the story. At the moment, it seems as though the declines are the result of a social network rumor, that, if true, could have an industry-wide impact.
All over social at the moment, we’re seeing a rumor surrounding Omnicom and others in in the advertising industry. According to the rumors, the United States Department of Justice is probing a large advertising industry contract for commercial production. Of course, any investigation will lead to declines. As a result, investors are selling off OMC.
What We’ll Be Watching Ahead
Of course, the CNA Finance team will be keeping an eye on the OMC story ahead. However, it’s important to keep in mind that what we’re seeing at the moment seems to be a rumor. We will keep a close eye on the news and update you as it becomes available.
UPDATE – The rumors started from a WSJ report. However, the story is still unconfirmed.
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[Image Courtesy of Wikimedia]