Charles Plosser said the Federal Reserve’s efforts to boost the economicrecovery by buying bonds was not likely to succeed. “The slow pace ofthe recovery should not be taken as evidence that the stance of monetarypolicy is inappropriate or that ever more aggressive accommodation canspeed up that pace,” he said.
Prior to Plosser’s speech inPhiladelphia, retail stocks were rallying on word that consumerconfidence rose to its highest level in seven months. The S&P RetailIndex rose as much as 1 percent before closing down 0.7 percent, or4.80 points, to 653.38. The Dow Jones Industrial Average fell 0.8percent, or 101.37 points, to 13,457.55.
Among the declinerswere Oxford Industries Inc., down 4.7 percent to $56.07; Fossil Inc.,3.4 percent to $84.89; Guess Inc., 3.3 percent to $24.99, and UnderArmour Inc., 3.2 percent to $54.62.
Shoppers, at least, are feeling better.
TheConference Board’s Consumer Confidence Index was up 9 points to 70.3this month, the highest level since February and much better than the1.7-point increase economists expected.
Lynn Franco, director ofeconomic indicators at The Conference Board, said, “Consumers were morepositive in their assessment of current conditions, in particular thejob market, and considerably more optimistic about the short-termoutlook for business conditions, employment and their financialsituation. Despite continuing economic uncertainty, consumers areslightly more optimistic than they have been in several months.”
Ofthe people who took the research firm’s survey, 18.2 percent said theyexpected business conditions to improve over the next six months, upfrom 16.7 percent, and 18.5 percent said they expect more jobs in themonths ahead, up from 15.8 percent.
“The summer doldrums havebeen reversed, and there is a considerably more upbeat view of jobprospects,” said Chris Christopher, U.S. economist at IHS GlobalInsight. “Back-to-school retail sales have not been very promising, andthis bounce in consumer mood — if maintained — may assist in boostingholiday retail sales.”
In Europe, stocks closed higher as MarioDraghi, president of the European Central Bank, called on governments touse “fundamental” measures help resolve the debt crisis.
“Weexpect the economy to return to growth next year.… Governments must actto ensure this immediate upturn strengthens rather than weakens,” saidDraghi.
The FTSE 100 in London increased 0.4 percent to5,859.71, as the CAC 40 in Paris rose 0.5 percent to 3,513.81, the DAXin Frankfurt climbed 0.2 percent to 7,425.11, and the FTSE MIB in Milanadvanced 0.4 percent to 15,932.60.
Among the retail and luxurystocks that gained the most ground were Safilo, up 5.9 percent to 6.18euros, and Inditex, 2.2 percent to 99.70 percent.
Postingdeclines for the day were Aeffe, which fell 6.1 percent to 0.63 euros;Burberry, 1.1 percent to 10.18 pounds, and Ferragamo, 1.4 percent to16.58 euros.
The pound traded at $1.62 against the dollar, while the euro traded at $1.29.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)