U.S. retail shares expanded on earlier gains and the major indices rallied from breakeven levels following the Federal Reserve’s latest comments suggesting measured increases in interest rates as the economy improves.
The S&P 500 Retailing Industry Group, up nearly all day, padded gains and closed ahead 1.1 percent at 894.51 for its second biggest gain of the month, just below the 1.2 percent advance logged on June 5.
Meanwhile, the S&P 500 finished the day up 0.8 percent at 1,956.98, the highest close in its history, after hitting an all-time high of 1,957.74 in the final half-hour of trading. The Dow Jones Industrial Average was up 0.6 percent to 16,906.62 and the Nasdaq Composite up 0.6 percent to 4,362.84.
The major indices had hovered near the breakeven point for much of the day but logged strong gains in the aftermath of the release of the Federal Reserve’s notes in which it indicated it would trim another $10 billion a month from its bond-buying program, with $35 billion a month now set.
The Fed also suggested it would take a measured approach to any increases in interest rates as economic improvement continues its gradual pace. “The unemployment rate, though lower, remains elevated,” the Fed said. The unemployment rate in May was 6.3 percent, unchanged from April and down from its 10 percent peak in October 2009.
Among U.S. retail, fashion and beauty stocks monitored by WWD, Joe’s Jeans Inc, scored the biggest advance, rising 4.8 percent to $1.10, followed by Citi Trends Inc.’s 4.4 percent gain to $21.81 and 3 percent increases for Lululemon Athletica Inc. and Avon Products Inc., which closed at $39.88 and $15. Vince Holding Corp. shares were up 2.9 percent to $36.60.
Among issues in decline were Elizabeth Arden Inc., down 4.4 percent to $28.40; Birks Group Inc., off 4.2 percent to $1.15, and Coach Inc., 4 percent lower at $39.19. Coach shares are off 34.2 percent from their 52-week high of $59.58, reached July 24. The corresponding low of $38.56 was reached on June 12.
European markets stayed fairly close to their starting points for the day, with the FTSE 100 in London and FTSE MIB in Milan both up 0.2 percent, to 6,778.56 and 22,030.34, respectively, and the DAX in Frankfurt ahead 0.1 percent to 9,930.33. The CAC 40 in Paris was off 0.1 percent to 4,530.37.
Fashion and luxury stocks were generally on the losing side of the action,, with notable exceptions including Aeffe, up 10 percent to 1.37 euros, and Mulberry Group, up 2.5 percent to 7.33 pounds.
Decliners included Yoox, off 5.1 percent to 19.74 euros; Brunello Cucinelli, 2.6 percent to 15.97 euros; Asos, 2.5 percent to 27.93 pounds, and Geox, 1.8 percent to 2.66 euros.
Shares of The Mysale Group, which commenced trading on London’s AIM market, were down 2.4 percent to 1.83 pounds. Shares of the flash sale site operator opened on Monday amid confusion about whether trading had been denominated in pounds rather than pence.
The euro traded for $1.35 versus the U.S. dollar and the pound at $1.70.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
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