The Treasury Department’s Sunday bailout of Fannie Mae and Freddie Mac removed one of the darkest clouds from the American financial horizon, sending stocks higher in the U.S. and abroad. The Dow Jones Industrial Average flirted with a 300-point gain before finishing Monday’s session up 290.43 points, or 2.6 percent, at 11,510.74, but retail stocks locked in larger gains, and nearly universal ones, from the rescue plan. The Standard & Poor’s Retail Index finished the day at 421.54, up 17.76, or 4.4 percent. Specialty retailers registered some of the biggest gains of the day. Talbots, Hot Topic, Coach and Guess made WWD’s list of strongest performers with gains of 9.4, 8.5, 7.3 and 7.2 percent, respectively. Dillard’s, with a 7.8 percent increase, was the sole department store operator to qualify, but Macy’s and Marks & Spencer both came close with increases of 6.9 and 6.2 percent, respectively. Among specialty issues, Zumiez (up 7.2 percent) and Pacific Sunwear (up 7 percent) qualified for honorable mention. Liz Claiborne also logged a strong day, finishing with a 7.1 percent increase at $18.24. Shares in Tokyo and Paris rose 3.4 percent, while those in London were up 3.9 percent.
This story first appeared in the September 9, 2008 issue of WWD. Subscribe Today.
* Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros.