Retail stocks surged Tuesday after the Federal Reserve reduced its benchmark interest rate by a half point.
In line with the overall market's biggest one-day rally in almost five years, many retail shares climbed more than 6 percent. The top movers included The Bon-Ton Stores Inc., which rose 10.88 percent to close at $25.79; J. Crew Group Inc., up 9.34 percent to $46.47, and Cache Inc., climbing 8.99 percent to $17.70.
Aéropostale Inc. jumped 8.82 percent to $20.60 and Saks Inc. rose 8.57 percent to $17.10. Among other top gainers were: Macy's Inc., up 8.31 percent to $32.44; J.C. Penney Co. Inc., with an increase of 7.42 percent to $68.05; AnnTaylor Stores Corp., up 7.48 percent to $34.35, and Kohl's Corp., which jumped 6.66 percent to $59.61.
Seeking to stabilize the economy amid a deepening housing slowdown and credit squeeze, the central bank opted for the half-point cut in the interest rate that banks charge each other for overnight loans — to 4.75 percent from 5.25 percent — rather than a reduction of a quarter of a percentage point. It was the first interest rate decrease in four years.
The aggressive move, which could lower borrowing costs for consumers, was coupled with a promise by the Fed to act as needed to prevent mortgage default losses and possible recession.
The Dow Jones Industrial Average soared 2.51 percent, or 335.97 points, to 13,739.39, the S&P Retail Index climbed 4.76 percent, or 22.68 points, to 499.03 and the Nasdaq was up 2.7 percent, or 70 points, to 2,651.66.
Meanwhile, August wholesale prices on U.S.-made women's and girls' apparel inched up a seasonally adjusted 0.1 percent compared with July and were up 0.8 percent from a year earlier, according to the Labor Department's Producer Price Index released Tuesday.
Within the category, knit shirt wholesale prices jumped 3.9 percent compared with the year-ago period. Dress prices slid 2 percent and underwear was down 2.6 percent.
Since more than 90 percent of the apparel sold in the U.S. is made abroad, price fluctuations among U.S. producers are not indicative of broader trends in the market.Prices on all U.S.-made goods fell 1.4 percent, the largest drop since October, the Labor Department said. Excluding the volatile food and energy sectors, wholesale prices rose 0.2 percent, after a 0.1 percent increase in July and a 0.3 percent bump up in June.
On the textile side, August wholesale prices for synthetic fibers slid 0.3 percent against a year earlier, but yarn prices were up 2.8 percent. Prices of greige fabrics rose 0.1 percent and finished fabric prices increased 1.2 percent.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast