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.
@juicebeauty, where @gwynethpaltrow holds the title of creative director of makeup, has become one of the foremost labels in the organic beauty category –– with sales on track to hit $100 million this year. What’s behind the rapid growth the brand is experiencing right now? It all started in 2005 when the wellness movement was just getting started. Read more on WWD.com. #wwdbeauty
Stay up to do date with breaking news and trending stories with WWD’s “The Essentialist.” Our newsletter delivers the top news in fashion right to your inbox. Want more info? Link in bio. #wwdfashion (📷: @kukukuba)
"I want to tell a story that inspires people to feel good about themselves, but also I'm making a commentary about the lack of female stories and female directors and saying this should change," said @imheathergraham on her latest project "Half Magic." The comedy feature, which the actress wrote and directed, is based on her own struggles as a woman in show business. Read @andrewnodell's full interview with Graham on WWD.com. #wwdeye (📷: @jgreenery)
@meltcosmetics cofounders @lora_arellano and @danabomar built their brand on a single idea: a true matte lipstick. To set the brand apart, they said they always put their customers first –– including a personalized note in each package. #wwdsummits #wwdbeauty
@moncler unveiled its latest project, #MonclerGenius, yesterday at Milan Fashion Week. The Italian outwear maker gave show-goers a preview of the monthly collections – which were created by eight designers and creative talents including Pierpaolo Piccioli, Simone Rocha, Craig Green and more – that will start rolling out in the summer.