Word of a Senate budget deal propelled U.S. stocks up sharply Wednesday as investors latched on to hopes for an end to the government shutdown and the aversion of a debt-ceiling breach.
Stocks got off to a strong start in morning trading, as word of a deal between Senate Democrats and Republicans first circulated in the morning, and held on to gains throughout the day. The S&P 500 Retailing Industry Group advanced 1.2 percent, or 10.37 points, to 849.98, nearly keep pace with the 1.4 percent gains registered by both the Dow Jones IndustrialAverage and S&P 500, which closed at 15,373.83 and 1,721.54, respectively.
A vote in the Senate is expected this evening with consideration by the House of Representatives, where resistance to a deal had withered, expected shortly thereafter. Affirmative votes would end the nation’s 16-day government shutdown and lift the debt ceiling, avoiding what could have been the first default in the history of the U.S. government.
The standoff in Washington had further complicated a consumer purchasing picture that had grown gloomier before the start of the shutdown. Even with government workers hoping for an end to the furloughs, the task of luring consumers back into stores might not be easy.
Among U.S. retail, fashion and beauty stocks tracked by WWD, gainers outnumbered decliners by about a six-to-one margin, led by Zale Corp., up 10.5 percent to $17.08, and Christopher & Banks Corp., up 4.4 percent to $6.43. Shares of J.C. Penney Co. Inc. picked up 4.2 percent to $7.47 after the retailer late Tuesday denied reports that it had retained bankruptcy counsel. The TJX Cos. Inc., Kohl’s Corp., The Bon-Ton Stores Inc., Dillard’s Inc. and Macy’s Inc. all saw their shares move ahead more than 3 percent as the news from Washington remained hopeful.
The two biggest declines among the WWD sample came from Joe’s Jeans Inc. and The Wet Seal Inc., off 8.5 and 6.8 percent, respectively, to $1.08 and $3.58. Joe’s Jeans late Tuesday reported lower sales and earnings in its third quarter, in large part because of declining same-store sales during the period. Wet Seal lowered third-quarter guidance, projecting a larger loss and weaker same-store sales than originally expected based on weak traffic patterns and more aggressive promotions as a result.
Most European stock markets posted modest gains for the day, although these generally weren’t shared by fashion and luxury issues.
The FTSE MIB in Milan rose the most, with the Italian market up 1.5 percent to 19,275.04, followed by the DAX in Frankfurt, 0.5 percent to 8,846.00 and the FTSE 100 in London, 0.3 percent to 6,571.59.
The CAC 40 in Paris dipped 0.3 percent to 4,243.72.
The euro traded at $1.35, while the pound fetched $1.60 and the Swiss franc equaled $1.10.
Retail and luxury stocks were mostly down, with the day’s biggest fallers including Ferragamo, 3.2 percent to 24.59 euros; Mulberry Group, 6.7 percent to 9.97 pounds; and LVMH Moët Hennessy Louis Vuitton, 4.3 percent to 138.70 euros.
Among the few stocks that gained ground were Yoox.com, which was up 6.9 percent to 24.45 euros; Metro AG, 4.3 percent to 32.94 euros; and Debenhams plc, 1.6 percent to 1.10 pounds.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye