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Retail Gains in Down Market

Stocks off as investors contemplate manufacturing slowdown.

U.S. retail ran countertrend and rose today as Wall Street slumped on a weak manufacturing report.

 

The S&P Retail index gained 0.5 percent, or 3.08 points to 617.37, and the Dow Jones Industrial Average slipped 0.1 percent, or 8.70 points, to 12,871.39. The Institute for Supply Chain Management’s manufacturing index fell to 49.7 in June, down from 53.5 in May. Economists were expecting a much milder drop to 52.

 

Anything below 50 on the index indicates U.S. manufacturing is contracting.

 

The day’s gainers included The Jones Group Inc., up 6.2 percent to $10.15; The Bon-Ton Stores Inc., 5.6 percent to $8.25; Citi Trends Inc., 4.4 percent to $16.12; Saks Inc., 3.4 percent to $11.01, and Limited Brands Inc., 3.3 percent to $43.95.

 

In Europe, markets moved up even as euro zone unemployment hit a new record in May — 11.1 percent — according to the statistics agency Eurostat.

 

Paris’ CAC 40 rose 1.4 percent to 3,240.20, as London’s FTSE 100 climbed 1.3 percent to 5,640.64, Frankfurt’s DAX advanced 1.2 percent to 6,496.08 and Milan’s FTSE MIB climbed 0.2 percent to 14,308.79.

 

Retail and luxury stocks were mixed, with the day’s biggest gainers including Unilever, rising 2.1 percent to 26.99 euros; Mulberry Group, 1.8 percent to 15.07 pounds, and PPR, 1.8 percent to 114.30 euros.

 

The euro traded at $1.27, while the pound went for $1.57.