Wall Street greeted 2013 and Washington’s fiscal cliff deal with a rally, but retailers missed out on some of the gains.
At 1:10 p.m. in New York, the S&P 500 Retailing Industry Group was up 0.9 percent, or 5.56 points, to 658.62, lagging the Dow Jones Industrial Average, which was ahead 1.8 percent, or 231.79 points, to 13,335.93.
Among the fashion and beauty firms that did take part of the rush up were J.C. Penney Co. Inc., up 6.1 percent to $20.92; Avon Products Inc., 4.5 percent to $15.01, and Tiffany & Co., 3.1 percent to $59.11. Tiffany renewed its Elsa Peretti license, paying the designer an initial $47.3 million, according to a regulatory filing. The agreement extends the license for 20 years.
The House approved a deal on Tuesday that raises taxes on the wealthiest Americans, extends unemployment benefits and delays across-the-board spending cuts for two months, although a 2 percent payroll-tax cut was also allowed to lapse.
The agreement kept the nation from going over the so-called fiscal cliff, but leaves lingering the issue of cuts to government spending programs.
Washington will have to keep grappling with deficit issues in the months ahead, but investors both in the U.S. and abroad were just happy to avoid what many saw as fiscal calamity.
Milan’s FTSE MIB climbed 3.8 percent to 16,863.30, followed by the CAC 40 in Paris, which grew 2.6 percent to 3,733.93.
The DAX in Frankfurt and the FTSE 100 in London both advanced 2.2 percent, to 6,027.37 and 6,027.37, respectively. This was the first time since July 2011 that the British index had exceeded the 6,000-point mark.
Retail and luxury stocks reflected the upward trend. The day’s strongest growers included Mulberry, up 3.9 percent to 12.19 pounds; Inditex, 3.6 percent to 109.30 euros; Tod’s, 3.4 percent to 98.90 euros, and Burberry, 3.2 percent to 12.65 pounds.
The pound was trading at $1.62 versus the dollar and the euro was worth $1.32 when markets closed.
Hong Kong’s Hang Seng Index gained 2.9 percent to 23,311.98 and Tokyo’s Nikkei 225 increased 0.7 percent to 10,395.18.