Stock markets were caught in a will-they-or-won’t-they limbo Mondayas Washington lawmakers worked to finalize a deal to raise the nation’sdebt ceiling and avoid a potentially catastrophic default.
Marketszigzagged from the opening bell and spent most of the session well inthe red, then recovered as the close neared. Retail fared worse thanother sectors throughout the day. The S&P Retail Index ended off 1percent, or 5.22 points, at 533.94, as the Dow Jones Industrial Averageclosed with a decline of just 10.75 points to 12,132.49.
Theretail decliners included Express Inc., down 5.8 percent to $21.15; SaksInc., 2.1 percent to $10.51, and J.C. Penney Co. Inc., 1 percent to$30.45. Bucking that trend was Zale Corp., which gained 9.8 percent to$6.16.
The deficit reduction package being pushed by PresidentObama and Congressional leaders would raise the debt limit by between$2.1 trillion and $2.4 trillion and impose 10-year spending caps on theoperating budgets of the government’s federal agencies. This wouldresult in a collective reduction in annual domestic spending of nearly$1 trillion over the next decade, according to a White House fact sheet.
Theoutline of the plan does not include specifics on which Cabinet agencybudgets or programs might be cut, but areas important to the fashionindustry, such as the cotton or wool trust funds, textile enforcementand port security could face reductions. In addition, budgets forfederal agencies governing trade, such as the U.S. TradeRepresentative’s office and Commerce Department, could face reductionsin operating funds.
The broad package also includes a secondtranche of spending cuts, which will be determined by a special jointcommittee tasked with identifying an additional $1.5 trillion in cuts,including from entitlement and tax reform, over 10 years.
Barringa last-minute breakdown in the debt deal, retail investors can start toturn their attention to July comparable-store sales results due onThursday and an update on the nation’s unemployment rate and payrolls onFriday.
While payrolls are expected to gain versus last month’svery poor showing, analysts see July sales as a mixed bag for retailers.
“Extremeheat during the month drove shoppers to malls in search of coolertemperatures,” said Adrienne Tennant, an analyst at Janney CapitalMarkets. “The heat…has been very helpful in driving traffic during themonth and while we expect July to be another solid sales month forretail, we do expect it to have slowed from June’s very strong levels.”
Tennantsaid comps would be largely positive for softline retailers, but thatinvestor expectations are also high.
Eric Beder, an analyst atBrean Murray, Carret & Co., said July was a tepid month for chainstargeting teens. The analyst noted that teens and their parents werewaiting for sales or the last minute to buy and that the back-to-schoolseason has been price-driven for the last three years.
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