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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty