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Retail Stocks Gain Ground

Chico's and American Eagle lead the way after earnings reports.

Retail stocks outpaced the market today and both Chico’s FAS Inc. and American Eagle Outfitters Inc. showed solid gains after bullish second-quarter earnings reports.

 

The S&P Retail Index rose 0.6 percent, or 3.85 points, to 642.84, as the Dow Jones Industrial Average slipped 0.2 percent, or 30.82 points, to 13,272.76. Leading the way were Chico’s FAS Inc., up 6.6 percent to $18.21; American Eagle Outfitters, 6.2 percent to $22.13; Rue21 Inc., 6.2 percent to $28.96; Aéropostale Inc., 3.1 percent to $13.05, and Lululemon Athletica Inc., 2.9 percent to $62.84.

 

Standing out on the downside was Express Inc., which fell 11.1 percent to $15.03 after the company reduced its annual earnings outlook.

 

Markets were down in Europe. The CAC 40 in Paris led the decline, slipping 1.5 percent to 3,461.65, while the FTSE 100 in London dropped 1.4 percent to 5,774.20. The FTSE MIB in Milan dipped 1.1 percent to 15,161.18 while the DAX in Frankfurt fell 1 percent to 7,017.75.

 

Economic data from Japan today weighed on markets. The country’s trade deficit stood at a worse-than-expected 517.4 billion yen, or $6.51 billion. Leading the declines in London were mining stocks — which had led gains over the past few days — with Kazakhmys and Anglo American among the worst performing stocks.

 

Among the decliners were Mulberry Group, which dropped 2.2 percent to 14.07 pounds; Inditex, 2.7 percent to 87.03 euros; Hennes & Mauritz, 2.4 percent to 242 Swedish krona, and Yoox, 2.3 percent to 9.60 euros.

 

The few risers included Marcolin, up 1.4 percent to 4.34 euros; Safilo Group, 0.9 percent 5.95 euros, and Swatch Group, 1.1 percent to 70.75 Swiss francs.

 

The pound traded for $1.57 Wednesday, while the euro traded for $1.24. The Swedish krona went for $0.15 and the Swiss franc for $1.03.