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.
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion