U.S. retail stocks gained 0.5 percent today, adding to Monday’s 1 percent gain, which was fueled by stronger-than-expected September retail sales.
The S&P 500 Retailing Industry Group rose 3.54 points, to 654.11. The Dow Jones Industrial Average gained 1 percent, or 127.55 points, to 13,551.78. Investors were encouraged by quarterly reports from Johnson & Johnson and Goldman Sachs.
Accessories firms were among Wall Street’s best fashion stocks. The gainers included Fossil Inc., up 7.3 percent to $91.31; Movado Group Inc., 6.2 percent to $34.36; Michael Kors Holdings Ltd., 5.4 percent to $56.80, and Tiffany & Co., 3.7 percent to $64.06.
Shares of Tumi fell 3.3 percent to $22.43 after the company said it would sell as many as 11.6 million additional shares.
In Europe, markets were buoyant as investors awaited news of a bailout for Spain, which is said to be seeking a direct line of credit — something Germany is open to granting. Investors were also heartened by the stronger-than-expected 1.1 percent gain in September retail sales in the U.S.
The FTSE 100 in London rose 1.1 percent to 5,870.54, as the CAC 40 in Paris grew 2.4 percent to 3,500.94, the FTSE MIB in Milan rose by 2.5 percent to 15,985.16, and the DAX in Frankfurt expanded 1.6 percent to 7,376.27.
On Monday, LVMH Moët Hennessey Louis Vuitton said third-quarter organic revenues grew 6 percent — a slowdown from earlier in the year. Despite a dip in early trading, LVMH rallied back to post a gain of 3.6percent to 128.25 euros.
The other luxury gainers included Burberry, up 3 percent to 23.73 pounds; Compagnie Financière Richemont, 2.1 percent to 61.25 Swiss francs; PPR, 1.1 percent to 133.40 euros, and Tod’s, 0.5 percent to 89.15 euros.
Among the day’s losers were Hermès and Luxottica, both down 0.7 percent, to 218.80 and 28.60 euros, respectively.
The pound traded at $1.61 versus the dollar while the euro traded at $1.29 and the Swiss franc at $1.07.