disappointing earnings reports from two sp 500 ad agencies prompt wells fargos steven cahall to say it doesnt feel like a soft landing contrary to what wall street is saying another advertising and marketing agency confirmed that the technology sector appears to be having a lot of trouble when it comes to discretionary spending on advertising and marketing shares of interpublic group of companies inc ipg plunged 133 to close at 3287 on friday enough to lead the sp 500 indexs losers after the company missed secondquarter revenue expectations and cut its fullyear growth outlook in half citing weakness in the technology sector the stock suffered the biggest oneday selloff since it tumbled 153 on march 12 2020 that comes just two days after fellow ad agency omnicom group incs stock omc tumbled 104 to pace the sp 500s decliners after also missing on revenue and providing a somewhat downbeat outlook amid a pause in techsector spending as clients have become more cautious and the companies also said they saw softness from techsector clients in their firstquarter reports that might seem counterintuitive to investors given that the technology sector has been the sp 500s strongest this year the technology select sector spdr exchangetraded fund xlk has soared 415 year to date while the sp 500 index has advanced 182 interpublic chief executive philippe krakowsky said friday on a postearnings call with analysts that the tech sector is moving through a challenging period that has included significant cost and workforce cuts what we have seen is that the sector is under a lot of stress krakowsky said according to an alphasense transcript he said the pressure interpublic has seen in sector isnt from smaller tech companies or those backed by venture capitalists but a relatively small group of large companies and given a modestly more uncertain macroeconomic environment krakowsky said its clear that pressure on the tech sector is not abating i dont think that were going to be able to call the turn krakowsky said while hes confident the tech sector will eventually bottom its just theyre clearly going through something that is more protracted than any of us thought interpublic reported before fridays open secondquarter net income that rose to 2655 million or 68 cents a share from 2296 million or 58 cents a share in the same period a year ago excluding nonrecurring items adjusted earnings per share of 74 cents beat the factset consensus of 61 cents revenue fell 25 to 267 billion below the factset consensus of 239 billion for 2023 the company cut its organic growth guidance range to 1 to 2 from 2 to 4 wells fargo analyst steven cahall said that the disappointing earnings reports from the two companies this week are a worrying sign of gathering clouds for ad agencies with risks of a derating of the stocks on the horizon it doesnt feel like a soft landing cahall wrote in a note to clients interpublics stock has lost 13 year to date and omnicom shares have tacked on 28 while the sp 500 has gained 182 this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal