U.S. retail stocks rallied for a second-straight day today, perking up 1.3 percent as investors gained confidence that Greece would reach a deal with its creditors, unlocking another round of bailout funds.
The S&P Retail Index advanced 7.89 points to 596.15. The index, which set another all-time high of 597.11 in midday trading, has had total a two-day run of 2.7 percent.
The Dow Jones Industrial Average rose 0.6 percent, or 70.61 points, to 12,907.94 Among those on the rise were The Bon-Ton Stores, Inc., up 18.1 percent to $8.24; Maidenform Brands Inc., 5.3 percent to $22.19; Sears Holdings Corp., 5.1 percent to $77.63; Coach Inc., 4.6 percent to $76.79, and Lululemon Athletica Inc., 3.3 percent to $70.94.
More than 75 percent of Greek government bondholders have signed up for a debt swap that will see them shouldering losses, according to published reports.
If Greece manages to seal its debt swap deal, it will be eligible to receive a further tranche of bailout funds from the International Monetary Fund and the European Union and remain in the Euro.
Markets rallied strongly in Europe. The CAC 40 in Paris and the DAX in Frankfurt led the upswing, each rising 2.5 percent to 3,478.36 and 6,834.54 respectively. Milan’s FTSE MIB jumped 1.6 percent to 16,664.25, while London’s FTSE 100 was up 1.2 percent to 5,859.73.
The gainers included Burberry Group, up 4.9 percent to 15.08 pounds; Yoox.com, 5.7 percent to 10.69 euros; LVMH Moët Hennessy Louis Vuitton, 3.2 percent to 130 euros, and PPR, 2.4 percent to 129.75 euros.
The euro traded at $1.31, while the pound traded at $1.57.