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.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
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24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews