The Dow Jones Industrial Average broke back above 13,000 today as fears over Spain’s ability to keep borrowing money eased and big U.S. corporations posted solid results for the start of the year — although European luxury and retail stocks had a mixed showing for the day.
The S&P Retail Index rose 1.2 percent, or 7.20 points, to 622.92 as the Dow gained 1.5 percent, or 194.13 points, to close at 13,115.54. The Dow last closed above 13,000 on April 5. Among the retailers gaining steam today were Saks Inc., 5.2 percent to $11.15; Perry Ellis International Inc., 4 percent to $18.96; Chico’s FAS Inc., 3.8 percent to $15.64, and Abercrombie & Fitch Co., 3.5 percent to $48.42.
Investors were comforted by a successful auction of Spanish short-term debt. The country’s borrowing rates have been on the rise and have been a recent source of angst for investors, who are keeping a close eye on the finances of European countries. Japan also pledged $60 billion to the International Monetary Fund. And the IMF raised its forecast for global economic growth for 2012 to 3.5 percent, followed expansion of 4.1 percent in 2013.
U.S. corporations are also weighing in with quarterly updates and investors were pleased to see better-than-forecast results from Coca-Cola Co. and Johnson & Johnson.
European markets built on earlier gains and closed on an up note.
The FTSE MIB in Milan gained the most, rising 3.7 percent to 14,942.05. Paris’ CAC 40 and Frankfurt’s DAX each rose 2.7 percent to 3,292.51 and 6,801, respective. The FTSE 100 in London closed up 1.8 percent to 5,766.95.
In contrast, fashion, luxury and retail stocks had a choppier day. The high-flying Burberry took a step back and was the worst performer on the London Stock Exchange, falling 5.9 percent to 14.92 pounds even as the company reported a 17.1 percent rise in second half revenues.
Marks & Spencer was the second-biggest decliner in London, down 2.5 percent to 3.58 pounds, following news that group sales rose just 0.8 percent in the fourth quarter, which disappointed analysts. Mulberry also fell, by 1.7 percent to 21.45 pounds.
Among the gainers were Inditex, up 2.3 percent to 71.35 euros; Safilo Group, 2.1 percent to 4.85 euros, and PPR, 4.2 percent to 127.35 euros.
The pound traded for $1.61 Tuesday, while the euro traded for $1.37.