The investment community marked the beginning of Janet Yellen’s tenure as chairman of the Federal Reserve with a less than cheery reception.
Stocks on both sides of the Atlantic began the week with sharp declines spurred by a weak reading on U.S. manufacturing activity and continued trepidation about growth in emerging markets and corporate earnings.
The S&P 500 Retailing Industry Group lost 2.5 percent to close at 845.77, worse than the 2.1 percent decline of the Dow Jones Industrial Average, to 15,372.80, and the S&P 500’s 2.3 percent decline, to 1,741.89. The retail index’s drop was the second largest of the year, just slightly less than Friday’s 2.6 percent slide, and left the index down 10 percent since the start of the year. It’s lost ground in 16 of 22 trading sessions in 2014.
U.S. markets fell at the opening bell on word that the Institute of Supply Management’s manufacturing index came in at 51.3 percent in January, down from 56.5 percent in December and below the 56 percent mark expected by analysts. Apparel, leather and allied products were among the manufacturing sectors contracting last month.
Yellen, confirmed by the Senate early last month, was sworn in to succeed Ben Bernanke as Federal Reserve chairman. Her term as the head of the central bank runs until February 2018.
The sharpest loss among fashion, retail and beauty stocks tracked by WWD came from The Men’s Wearhouse Inc., off 7.8 percent to $44.31, as Jos. A. Bank Inc.’s resistance to MW’s offer to acquire Bank through a $1.61 billion cash tender offer, expressed in a letter to MW’s board released Sunday, made a deal appear less likely. Bank shares also surrendered value, falling 5 percent to $53.39. The cash tender offer is for $57.50 a share. Large losses were also taken by shareholders of New York & Co. Inc., down 6.2 percent to $4.25, and Christopher & Banks Corp., down 6 percent to $6.71.
Among only a handful of stocks with gains, Vince Holding Corp. rose 1 percent to $23.59 and Joe’s Jeans Inc. was up 0.9 percent to $1.15.
Europe’s markets also weathered a broad sell-off, with the FTSE MIB in Milan down 2.6 percent to 18,907.16 and the CAC 40 in Paris off 1.4 percent to 4,107.75. The DAX declined 1.3 percent to 9,186.52 in Frankfurt while the FTSE 100 was off 1.1 percent to 6,465.66 in London. Of the four European markets, only Milan’s is up so far for the year.
Among the heaviest losses came from Brunello Cucinelli, down 5.7 percent to 19.10 euros; Aeffe, down 5.1 percent to 0.75 euros, and Prada, down 4.2 percent to 56.95 Hong Kong dollars.
Those with positive days included French Connection Group, up 5.7 percent to 37 pence, and Bonmarche Holding, up 1.6 percent to 2.87 pounds.
The euro traded for $1.36 against the U.S. dollar while the pound was spotted at $1.64 and the Hong Kong dollar at 12.9 cents.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)