Retail shares and the broader market bounced back today.
The S&P 500 Retailing Industry Group rose 1.2 percent to 854.89, erasing Tuesday's 1 percent drop, as retailers’ quarterly earning results seemed to boost investor confidence.
The Dow Jones Industrial Average advanced 1 percent to 16,533.06 while the S&P 500 picked up 0.8 percent to 1,888.03.
Shares of Tiffany & Co. gained 9.2 percent to $96.30 after it reported stronger-than-expected first-quarter sales and earnings and lifted full-year guidance. Citi Trends Inc. also pulled off an earnings “beat” and was rewarded with a 15.3 percent gain in its shares, which closed at $19.76.
Target Corp. shares picked up ground, rising 1 percent to $57.20, as its earnings fell more than expected but its U.S. same-store sales declined 0.3 percent, less than the 1.1 percent drop expected on average by analysts.
American Eagle Outfitters Inc.’s shares were off 6.4 percent to $10.60 after it said it would close additional stores following its 86.2 percent drop in first-quarter profits.
Among the other retailers losing ground were The Wet Seal Inc., down 6.9 percent to 93 cents, and J.C. Penney Co. Inc. and Sears Holdings Corp., both of which saw shares recede 3.7 percent, to $8.60 and $36.56, respectively.
While sensitive to earnings reports in the wake of a difficult first quarter, investors appeared unmoved by disclosure in the afternoon of the minutes from the April 30 meeting of the Federal Reserve’s Open Market Committee. IHS Global Insight economist Paul Edelstein said the narrative did nothing to challenge the IHS view that bond buying will end this year, “but that interest rate hikes will wait until mid-2015.”
Europe’s major markets finished the day with gains with many fashion, luxury and retail stocks also in positive territory.
The FTSE MIB in Milan led the gainers, climbing 1.1 percent to 20,597.51, followed by the DAX in Frankfurt, which rose 0.6 percent to 9,697.87. The CAC 40 in Paris increased 0.4 percent to 4,468.03, followed by the FTSE 100 in London, up 0.3 percent to 6,821.04.
Sentiment in London was lifted by positive retail sales data released by the U.K.’s Office for National Statistics, which showed that the U.K.’s retail sales grew 6.9 percent in April compared to the same month last year, and by 1.3 percent compared to March 2014.
Stocks in the retail and fashion sectors that made gains included Asos.com, up 1.7 percent to 40.68 pounds; Safilo Group, 1.1 percent to 15.74 euros; Yoox Group, 1.4 percent to 22.53 euros, and Ted Baker, 2 percent to 17.95 pounds. Burberry closed up 0.2 percent to 15.18 pounds after reporting a 26.8 percent rise in profits to 322.5 million pounds, or $512.8 million.
The decliners included Koovs, down 2.2 percent to 1.53 pounds, while fellow online retailer Boohoo.com fell 3.2 percent to 43 pence. Moncler lost 0.6 percent to 12.50 euros and Kering dipped 0.7 percent to 160.65 euros.
The pound traded for $1.68 against the U.S. dollar, while the euro changed hands for $1.37.
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24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
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