Retail stocks modestly outperformed the market today in an unusual day for Wall Street, when an erroneous report on the Associated Press’ Twitter feed briefly sent the Dow Jones Industrial Average down more than 140 points.
Just after 1:00 p.m. on Wall Street, the AP Twitter feed reported there had been explosions at the White House and that President Obama had been injured. The news organization immediately denied the report and said its Twitter account had been hacked.
Investors who were quick to sell were also quick to buy and markets bounced back within 15 minutes. The S&P 500 Retailing Industry Group closed ahead 1.1 percent, or 8.32 points, to 745.55 as the Dow gained 1.1 percent, or 152.29 points, to 14,719.46.
Fashion’s gainers were led by Coach Inc., which jumped 9.8 percent to $55.55 after the firm said third-quarter net profits rose 6 percent to $239 million on a 7 percent sales gain. The company also said president and executive creative director Reed Krakoff would step down next year.
The other stocks gaining ground included Maidenform Brands Inc., up 3.7 percent to $18.30; Destination XL Group Inc., 3.7 percent to $4.81; Tilly’s Inc., 3.4 percent to $13.74, and Michael Kors Holdings Ltd., 3.3 percent to $54.09.
Markets were very strong in Europe as investors hoped the European Central Bank would cut interests to spur economic growth.
Paris’ CAC 40 shot up 3.6 percent to 3,783.05, as Milan’s FTSE MIB rose 2.9 percent to 16,490.77, Frankfurt’s DAX increased 2.4 percent to 7,658.21 and London’s FTSE 100 advanced 2 percent to 6,406.12.
Among those joining the rush up were Safilo Group, which rose 13.8 percent to 11.95 euros after the company posted a 12.1 percent gain in first-quarter earnings; Kering, the former PPR, 4.8 percent to 172.50 euros; Salvatore Ferragamo, 3.6 percent to 22.17 euros; Burberry Group, 3.4 percent to 13.22 pounds; Tod’s, 2.9 percent to 109.60 euros, and LVMH Moët Hennessy Louis Vuitton 2.7 percent to 125.10 euros.