Retail and fashion stocks helped push the Wall Street to fresh highs in morning trading, sending the Dow Jones Industrial Average above 19,000 for the first time.
At noon, the Dow was up 9.66 points at 18,966.35 after trading as high as 19,014.73 as investors continued to embrace President-elect Donald Trump’s promises to boost the economy with lower tax rates and more spending to build infrastructure.
The S&P 500, which has charged into new territory and set record highs since the election, trended down 0.1 percent to 2,195.71. However, the S&P 500 Retailing Industry Group pushed higher, gaining 1.5 percent to 1,386.61.
Three companies that updated investors in the morning were rewarded handsomely for signs of bottom-line momentum.
Shares of Burlington Stores Inc. increased 14.3 percent to $85.01, as Movado Group Inc. shot up 14 percent to $29.35 and Chico’s FAS Inc. rise 11.6 percent to $15.61.
Retailers have been beaten up in the market this year, with valuations sinking as investors grapple with big questions like how the internet will continue to change shopping, if anyone can effectively compete with Amazon and if sinking mall traffic will come back.
But with hopes that the economy will benefit from a big dose of spending on roads and bridges, retailers fortunes are gaining. The outlook for the holiday season is also shaping up to be generally positive.
That was the sentiment from retailers weighing in with third-quarter numbers.
Burlington said its third-quarter profits more than doubled to $32.4 million, or 45 cents a share.
Movado’s third-quarter profits dipped slightly, to $20.2 million, or 87 cents. But adjusted profits of 91 cents a share were well ahead of the 72 cents analysts expected.
And Chico’s returned to profitability in the third quarter, turning in profits of $23.6 million, or 18 cents a share, compared with from losses of $11.6 million a year ago. Adjusted earnings of 20 cents a share outpaced the 13 cents analysts projected.
Also joining in the latest leg of the Trump rally were, Abercrombie & Fitch Co., up 5.8 percent to $15.61; American Eagle Outfitters., 4.4 percent to $18.83; Ascena Retail Group Inc., 4.7 percent to $6.69; G-III Apparel Group Ltd., 4 percent to $29.41, and Signet Jewelers, 4.7 percent to $92.99.
Signet said its third-quarter profits increased to $14.8 million, or 20 cents a share, from $15 million, or 19 cents a year earlier.