Assurances of consistency at the Federal Reserve from new chair Janet Yellen soothed investors’ lingering anxieties, sending markets in the U.S. and Europe higher and propelling retail stocks to their sixth straight day of gains.
Following Yellen’s remarks to Congress about how she expected a “great deal of continuity” with the policies of her predecessor, Ben Bernanke, the Dow Jones Industrial Average gained 1.2 percent to 15,994.77 and the S&P 500 leaped above the 1,800 mark to close ahead 1.1 percent at 1,819.75.
Meanwhile, the S&P 500 Retailing Industry Group managed a more modest 0.7 percent gain to close at 891.93, reducing their decline for the year to 5.1 percent.
Sears Holdings Corp. experienced the largest run-up of the retail, fashion and beauty equities tracked by WWD, rising 8.4 percent to $38.72. Burlington Stores Inc.’s shares moved ahead 6.2 percent to $26.68 and J.C. Penney Co. Inc.’s were up 4.9 percent for the day to $5.99.
Bebe Stores Inc.’s shares took a 4.2 percent hit, declining to $5.50, after two days of strong gains following its report late Thursday of smaller-than-expected second-quarter losses, while shares of Urban Outfitters Inc. declined 2.8 percent, to $35.61, after it said late Monday that a 9 percent decline in comparable sales at its Urban Outfitters brand reduced fourth-quarter comps to a 1 percent increase. Corporate net sales advanced 5.7 percent to $905.9 million during the quarter.
European markets rallied as trading ended following Yellen’s remarks and finished with increases of 1 percent or more.
The DAX in Frankfurt gained the most, climbing 2 percent to 9,487.77; followed by the FTSE 100 in London, 1.2 percent to 6,672.66; the CAC 40 in Paris, 1.1 percent to 4,283.32; and the FTSE MIB in Milan, 1 percent to 19,887.39.
Retail and luxury stocks were mostly on the uptick, with the exception of L’Oréal, which fell 3.2 percent to 124.90 euros after announcing that it planned to buy back 48.5 million of its own shares from Nestlé, and Metro, which was down 3.1 percent after it said first-quarter sales and operating profit were hit by difficult market conditions, adverse currency effects and portfolio changes.
Among the stocks that gained the most ground were Marks & Spencer Group, 2.6 percent to 4.83 pounds; Debenhams, 3.8 percent to 77 pence, and Kering, 2.8 percent to 153.40 euros.
The euro traded at $1.36 against the U.S. dollar while the pound fetched $1.20 and the Swiss franc equaled $1.11.
@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)