The equity markets started off on a sour note Monday, with the DowJones Industrial Average dropping more than 140 points before a modestafternoon recovery, as Washington’s debate on whether to raise the debtceiling and avoid a U.S. default fed investor fears.
The Dowclosed down 0.7 percent, or 88.36 points, to 12,5923.80, while theS&P Retail Index also fell 0.7 percent, or 3.95 points, to 545.18.Anxious investors sought the safety of gold and pushed the preciousmetal up as much as $22.80 to an all-time high of $1,624.30 an ounce.
Sharesof retailer Francesca’s Holdings Corp., which shot up more than 20percent following the company’s initial public offering Friday, added2.4 percent to $28.31 in their second day of trading Monday.
However,decliners far outnumbered advancers in the retail sector, with some ofthe largest decreases coming from specialty stores. Limited Brands Inc.was off 4.3 percent to $38.45; Pacific Sunwear of California Inc. wasdown 4.1 percent to $2.79, and The Talbots Inc. finished 3.8 percentlower at $3.01.
Lawmakers have until Aug. 2 to raise the debtceiling or the U.S. could run out of money to pay its bills, a defaultthat could spark another financial crisis.
Given the severityof the debt crunch in Europe, where Greece is teetering and Italy isthought to be imperiled, investors have largely seen Washington’swrangling as politics as usual. But as the deadline for default nears —and thousands of government employees start to wonder about their nextpaycheck — more people are beginning to hash out the practical concerns.
Gary Wassner, co-chief executive officer of factoring firmHilldun Corp., said factories overseas are already starting to take atougher line when it comes to giving U.S. companies leeway on how theypay their bills.
“They’re already demanding funds up front,”Wassner said. “I don’t know if they’re going to extend them the kind ofcredit that they have over the last couple of years.”
Wassnersaid a default would undermine U.S. credibility and the country’scredit.
Economic forecasting group IHS Global Insight said lastweek that “worries over the intractable politics of deficit reductionand raising the federal debt ceiling have cast a pall over the economy.”Still, the group predicted that real gross domestic product growthwould increase from the “paltry” 1.9 percent annual rate seen in thefirst half to a 3 percent gain in the second half with help from exportsand pent-up demand for cars, housing and business equipment.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)