Retail stocks regained their momentum and closed at a new record high today on Wall Street.
The S&P 500 Retailing Industry Group rose 1 percent, or 8.23 points, to 875.20 after breaking a five-session winning streak with a minor decline Wednesday. The Dow Jones Industrial Average increased 0.6 percent, or 95.88 points, to 15,509.21.
The day’s gainers included G-III Apparel Group Ltd., up 4.8 percent to $58.91; Abercrombie & Fitch Co., 3.1 percent to $36.52; Urban Outfitters Inc., 3.1 percent to $37.59, and The Bon-Ton Stores Inc., 2.5 percent to $11.19.
There were also notable decliners in the fashion sector.
J.C. Penney Co. Inc.’s stock fell 4.1 percent to $6.75. Fitch Ratings said the “significant widening” in the company’s credit default swaps underscored a “continued investor concern as the retailer struggles to find its footing.” Such swaps help investors insure against a default and the rating agency projected a cash burn of $2.8 billion to $3 billion in 2013 at Penney’s, about $1 billion higher than its mid-May estimate.
Shares of Under Armour Inc. declined 4.8 percent to $79.98 even though the company posted a 27 percent gain in third-quarter profits and nudged up its outlook for the year. Investors are likely looking to take some money off the table after the company’s year-to-date stock gain of nearly 65 percent.
Traders were also feeling bullish in Europe.
The FTSE MIB in Milan grew 1.3 percent to 19,152.93, as Frankfurt’s DAX rose 0.7 percent to 8,980.63, the CAC 40 in Paris advanced 0.4 percent to 4,275.69 and London’s FTSE 100 gained 0.6 percent to 6,713.18.
The euro was trading at $1.38 against the dollar and the pound was worth $1.62.
Retail and luxury stocks were predominantly down with Marks & Spencer declining 1.8 percent to 4.77 pounds; Hermès International off 1.2 percent to 252.65 euros, and Asos.com dipping 1.9 percent to 51.05 pounds.
Unilever shed 0.2 percent to 28.93 euros after it posted a 6.5 percent drop in third-quarter revenue to 12.5 billion euros, or $16.5 billion at average exchange, owing to a currency fluctuations and a lack of improvement in the company’s North American and European markets.
Among the few shares making modest gains were Ferragamo, up 1.2 percent to 25.17 euros, and Mulberry, 0.7 percent to 10.45 pounds.