Markets rallied for a second day after the Federal Reserve stepped in to boost the U.S. economy with a plan to buy $40 billion in mortgage debt monthly.
The open-ended support, which will help keep interest rates lower, helped push the S&P Retail Index up 0.6 percent, or 3.95 points, to 669.26 — the index’s best close on record. The Dow Jones Industrial Average gained 0.4 percent, or 53.51 points, to 13,593.37, after rising more than 200 points Thursday.
Although the Fed move boosted the stock market, it was also a worrying sign that chairman Ben S. Bernanke sees the recovery as weak enough to require what amounts to a third shot in the arm. The day’s gainers included Fossil Inc., up 11.4 percent to $93.60; The Buckle Inc., 4.4 percent to $47.60; Sears Holdings Corp., 3.2 percent to $61.71; Tumi Holdings Inc., 3.1 percent to $26.11, and Warnaco Group Inc., 2.7 percent to $55.20.
In Europe, investors weighed in for the first time on the Fed’s boost to the U.S. economy and approved. Madrid’s IBEX 35 shot up 2.8 percent to 8,154.50, as Milan’s FTSE MIB rose 2.3 percent to 16,624.45, Paris’ CAC 40 rose 2.3 percent to 3,581.58, London’s FTSE 100 increased 1.6 percent to 5,915.55, and Frankfurt’s DAX advanced 1.4 percent to 7,412.13.
The strongest stocks included Burberry Group,up 3 percent to 10.82 pounds after earlier this week losing close to 25 percent of their value on warnings of a softening in demand; LVMH Moët Hennessy Louis Vuitton, 2.8 percent to 126.80 euros; Hermès International, 2.4 percent to 219.40 euros, and Tod’s, 1.6 percent to 88.05 euros.
The euro traded for $1.29 compared with the dollar and the pound went for $1.61.
@juicebeauty, where @gwynethpaltrow holds the title of creative director of makeup, has become one of the foremost labels in the organic beauty category –– with sales on track to hit $100 million this year. What’s behind the rapid growth the brand is experiencing right now? It all started in 2005 when the wellness movement was just getting started. Read more on WWD.com. #wwdbeauty
Stay up to do date with breaking news and trending stories with WWD’s “The Essentialist.” Our newsletter delivers the top news in fashion right to your inbox. Want more info? Link in bio. #wwdfashion (📷: @kukukuba)
"I want to tell a story that inspires people to feel good about themselves, but also I'm making a commentary about the lack of female stories and female directors and saying this should change," said @imheathergraham on her latest project "Half Magic." The comedy feature, which the actress wrote and directed, is based on her own struggles as a woman in show business. Read @andrewnodell's full interview with Graham on WWD.com. #wwdeye (📷: @jgreenery)
@meltcosmetics cofounders @lora_arellano and @danabomar built their brand on a single idea: a true matte lipstick. To set the brand apart, they said they always put their customers first –– including a personalized note in each package. #wwdsummits #wwdbeauty
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