By and  on December 11, 2013

U.S. retail stocks joined major U.S. and European indices today in a broad sell-off that followed Tuesday night’s budget deal.
 
The S&P Retailing Industry Group dropped 0.6 percent to 915.91 while the Dow Jones Industrial Average and S&P 500, respectively, tracked down 0.8 and 1.1 percent, to 15,843.53 and 1,782.22, respectively. The S&P 500 surrendered the 1,800 level today, as the Dow did the 16,000 milestone on Tuesday.
 
The budget agreement Tuesday was seen as adding to the likelihood that the Federal Reserve would decelerate its bond-buying program. The Federal Reserve Open Market Committee begins a two-day meeting on Tuesday.
 
Among U.S. fashion, retail and beauty stocks tracked by WWD, issues in decline outnumbered those gaining ground by a roughly two-to-one margin. Quiksilver Inc. and Coldwater Creek Inc. both dropped 5.5 percent, to $7.53 and 84 cents, respectively, with Avon Products Inc. down 4.4 percent to $17.03 after it disclosed it would cut about 650 jobs and stop the implementation of an order management system.
 
The healthiest gain came from Burlington Stores Inc., up 8.3 percent to $28.07. That gain nearly erased the stock's decline from Tuesday, when Burlington gave weak fourth-quarter sales guidance.
 
In Europe, markets also took a step back.

FTSE MIB in Milan led the way with a 1.4 percent decline to 17,973.96. The DAX in Frankfurt contracted 0.4 percent to 9,077.11, and the FTSE 100 in London decreased 0.2 percent to 6,507.72. The CAC 40 in Paris fell 0.1 percent to 4,086.86.
 
The euro traded at $1.38 against the U.S. dollar, while the pound fetched $1.64, and the Swiss franc equaled $1.12.
       
Retail and luxury stocks were mostly down, with a few exceptions including Marks & Spencer Group, which advanced 1.5 percent to 4.66 pounds; Geox, 1.6 percent to 2.66 euros; and Asos.com, 1.8 percent to 60.29 pounds.
       
Among the day’s biggest descents came from Mulberry Group, down 2.1 percent to 9.99 pounds; Safilo Group, 1.7 percent to 17.23 euros, and Brunello Cucinelli, 1.2 percent to 24.87 euros.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus