Although it is too soon to tell if the worst of the credit crisis may be over, Wall Street rallied on Tuesday following upbeat news in the banking sector, a retreat in commodities prices and better-than-expected manufacturing data.
This story first appeared in the April 2, 2008 issue of WWD. Subscribe Today.
The Dow Jones Industrial average gained more than 390 points to close at 12,656.36, while the broader S&P 500 jumped 3.6 percent to 1,370.18. The S&P Retail Index climbed 5.8 percent to hit 407.10.
Leading the retailers pack was Talbots Inc., which earlier in the day released a plan to turn around its flailing business. Talbots spiked 11.4 percent to close at $12.01.
Midtier department stores also saw steep rebounds. After slashing earnings guidance last week, J.C. Penney rose 6.4 percent to $40.12, while Kohl’s Corp. increased 6.3 percent to $45.59. Macy’s Inc. grew 7 percent to $24.67, and Sears Holdings Corp. was up 7.2 percent to end the day at $109.47.
In the specialty sector, Lululemon Athletica Inc. shot up 11 percent to $31.57 on analysts’ reports, which said they do not expect to see a slowdown at the athletic apparel retailer when it reports fourth-quarter earnings on Wednesday.
J. Crew Group increased 7.4 percent to $47.42, while teen retailer Abercrombie & Fitch rose 4.9 percent to $76.69. Urban Outfitters increased 5.2 percent to $32.99, and Limited Brands was 6.4 percent higher to $18.20.
Retail giant Wal-Mart Stores gained 2.7 percent to $54.08, while rival Target increased 5.1 percent to close at $53.27.
Department store Gottschalks was one of the rare decliners of the day, sinking 7 percent to $2.78, while Wilsons The Leather Experts fell 33.4 percent to end the day at 14 cents.