By and and  on July 16, 2010

Retail stocks inched up 0.7 percent Thursday, but the broader market slipped as economic concerns dominated the debate on Wall Street.

Remaining above 400 most of the day, the S&P Retail Index rose 2.85 points to 403.93 as the Dow Jones Industrial Average decreased 7.41 points to 10,359.31.

Investors refused to set aside worries surrounding the economic recovery even for a $4.8 billion second-quarter profit from JPMorgan Chase & Co. or word that the BP oil spill in the Gulf of Mexico had been successfully capped. Wall Street was also gauging the impact of Washington’s overhaul of the financial regulatory system, which was passed by Congress.

Markets in Asia and Europe were both down.

The Hang Seng Index fell 1.5 percent to 20,255.62 in Hong Kong and the Nikkei 225 slipped 1.1 percent to 9,685.53 in Tokyo. The CAC 40 dropped 1.4 percent to 3,581.82 in Paris and the FTSE 100 declined 0.8 percent to 5,211.29 in London.

• Producer Prices Flat: Wholesale prices for U.S.-made apparel were flat in June compared with May and rose 0.2 percent compared with a year earlier, the Labor Department reported Thursday in its Producer Price Index. In 12-month comparisons, prices for women’s apparel fell 0.3 percent and prices for men’s apparel rose 0.8 percent. Prices for all goods and services fell a seasonally adjusted 0.5 percent in June, following declines of 0.3 percent in May and 0.1 percent in April. Prices for so-called core goods, which exclude energy and food prices, rose 0.1 percent. “There’s plenty of slack in the economy, growth is slowing and cost pressures are easing. Deflation, not inflation, is the primary risk now,” said Nigel Gault, chief U.S. economist for IHS Global Insight.

• Zumiez Out of West 49 Bidding: Zumiez Inc. has elected to discontinue its pursuit of an acquisition of West 49, the Canadian action sport retailer that had previously agreed to be acquired by Australia’s Billabong International Ltd. for about $80 million. Zumiez said it had called off its pursuit of the retail chain because of failure to come to an agreement on the terms of the due diligence process. Billabong on Monday reached a “conditional agreement” to acquire California-based skate and lifestyle brand Rvca.

• McCreight Leaves Under Armour: David McCreight has resigned as president of Under Armour Inc. after two years in the post. Kevin Plank, chairman and chief executive officer, will assume the title of president, which he held previously. Plank will have direct responsibility for the strategic direction of the apparel and footwear businesses.

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus