Retail Stocks Gain, Amazon Soars

Amazon stock jumps 9.4 percent after sales jump.

Retail stocks took a decisive step up on Wall Street today, setting another new high as Amazon.com Inc. soared on the strength of its revenue growth.

The S&P 500 Retailing Industry Group gained 1.5 percent, or 13.45 points, to 888.65 — another record close in what’s been a strong run for retail. The sector outpaced the Dow Jones Industrial Average, which increased 0.4 percent, or 61.07 points, to 15,570.28.

Amazon’s stock jumped 9.4 percent to $363.39 after the Web giant projected fourth-quarter sales would rise between 10 percent to 25 percent, shooting as high as $26.5 billion. Third-quarter sales gained 23.8 percent to $17.09 billion.

Also perking up were Tumi Holdings Inc., up 1.8 percent to $21.18; American Eagle Outfitters, 1.8 percent to $14.42; Coach Inc., 1.6 percent to $49.89, and Burlington Stores Inc., 1.6 percent to $26.43.

Europe’s markets were mixed at the close of trading as German business confidence took a dip for the first time in six months.

The FTSE MIB lost 1.5 percent to 18,874.75 and Paris’ CAC 40 slipped 0.1 percent to 4,272.31. Frankfurt’s DAX advanced slightly, gaining 0.1 percent to 8,985.74 despite the fall in confidence. 

The FTSE 100 in London was also up by 0.1 percent to 6,721.34 as the U.K.’s Office for National Statistics said the British economy grew by 0.8 percent in the third quarter. The country’s GDP still remains below its pre-downturn peak in the first quarter of 2008.

The pound traded at $1.62 against the dollar and the euro fetched $1.38.

Retail and luxury stocks were mostly down, with the day’s biggest decliners including Brunello Cucinelli, down 3.7 percent to 22.34 euros, and Safilo, 2.9 percent to 14.66 euros. Kering lost 2.2 percent, declining to 169.10 euros after it reported that third-quarter revenues dipped 1.5 percent to 2.52 billion euros, or $3.34 billion (at average exchange rates for the period).

Among the few shares making gains was Asos.com, up 2.8 percent to 52.45 pounds.