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.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews