Investors looked past a drop in consumer confidence and pushed markets up as the housing market showed some sign of strengthening.
The U.S.-centric S&P Retail Index rose 1.4 percent, or 8.66 points, to 608.95 as markets settled, and the Dow Jones Industrial Average increased 0.3 percent, or 32.16 points, to 12,534.82.
Shares of Pacific Sunwear of California Inc. jumped 10.3 percent to $1.60 after it was revealed in a Securities and Exchange Commission filing that director Brewer Brett purchased 23,000 shares of the firm since Sunday at prices ranging from $1.46 to $1.56 a share.
Also gaining were Tilly's Inc., up 6.8 percent to $16.05; Sears Holdings Corp. 5.6 percent to $55.28, and Michael Kors Holdings Ltd., 3.4 percent to $44. In the media world, shares of News Corp. had their best day since August, jumping 8.5 percent to $21.79 on word that the company’s entertainment and publishing businesses could separate.
Home prices rose 1.3 percent in April, snapping a seven-month string of declining prices, according to the S&P/Case-Shiller Home Price Indices.
Yinbin Li, principal economist at forecasting firm IHS Global Insight, said, “Consumer confidence is digging deeper into recession territory as many Americans see their job prospects dim, their household net worth take a beating, and the European debt crises send jitters through the equity markets.”
In Europe, investors continue to be skeptical that a European Union summit later this week would produce a solution to the region’s debt crisis. According to published reports, Germany’s chancellor Angela Merkel once again rejected the idea of euro bonds, which would be backed by the whole currency bloc and could be used to buttress weaker countries.
The FTSE MIB in Milan closed down 1.1 percent to 12,968.18, while the CAC 40 in Paris fell 0.3 percent to 3,012.71 and the FTSE 100 in London dipped 0.1 percent to 5,446.96. Frankfurt’s DAX bucked the trend and gained 0.1 percent to 6,136.69.
The day’s decliners included Ferragamo, which finished down 2.3 percent to 15.90 euros; Yoox, 1.7 percent to 11.21 euros, and Tod’s, 1.9 percent to 76.20 euros.
Among those managing to post gains were Inditex, up 0.6 percent to 77.65 euros; LVMH Moët Hennessy Louis Vuitton, 0.8 percent to 115 euros; L’Oreal, which 0.5 percent to 88.01 euros, and Hermès, up 0.5 percent to 248.90 euros.
The pound traded for $1.56 Tuesday while the euro traded for $1.25.
A grooming moment between @tanfrance and @antoni last night at the The LGBT Community Center Trailblazer Awards honoring Anna Wintour, Ricky Martin and more. See more photos at WWD.com #wwdeye (📷: @lexieblacklock)
“It was a very surreal feeling. It wasn’t like we were in the studio together coming up with it — it’s more like he discovered it and loved it. I didn’t let myself get my hopes up, but then it happened it was very exciting,” said singer-songwriter @nombe on discovering that @pharrell would be using his song, “Cant Catch Me” on his HBO documentary series “Outpost.” The German-born singer — named Noah MacBeth — talked to WWD about feminism, using art as a platform for political expression and personal style. Read more on WWD.com #wwdeye (📷: @jilliansollazzo)
This season, denim is going west – in influence. Brands like @fathersdaughterla (pictured here), @tommyhilfiger Jeans, @levis and more are opting for raw, top-stitching styles. (Styled by @thealexbadia; 📷: @ryanplett)
20-year-old British singer @jorjasmith_ made her debut at Coachella last weekend. We caught up with her and talked about her love for Amy Winehouse, working with Kendrick Lamar on the “Black Panther” album and her fashion philosophy. Read the interview on WWD.com #wwdeye (📷: @katiedaisyla)
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)