The WWD Global Stock Tracker recorded its eighth-straight day of gains despite a 6.6 percent decline in shares of Kohl’s Corp.
Kohl’s said late Monday that, with October same-store sales weak, its third-quarter comps were expected to fall 1.4 percent and its earnings for the period to be at the lower end of its guidance of between $4.05 and $4.45 a diluted share. Shares sold off in after-hours trading Monday and continued the downward trajectory today, falling to $54.66. At one point during the day, they had fallen 8 percent. The firm will hold an investor conference Wednesday.
Shares of Coach Inc. backtracked 6 percent to $34 after it reported a 45.3 percent decline in first-quarter earnings, including a 24 percent decline in its North American comps.
But overall the 100-issue tracker gained ground, advancing 0.4 percent to 99.93 — not far from the 100 it started at in July.
U.S. equities were helped by an unexpectedly strong rebound in The Conference Board’s Consumer Confidence Index, which roared back from a decline in September to hit 94.5, its highest mark in seven years. It registered 95.2 in October 2007, just before the bursting of the housing bubble and later financial crisis severely damaged the public’s view of economic realities and prospects.
The broader market performed well, with the Dow Jones Industrial Average adding 1.1 percent to pass 17,000 and rise to 17,005.75, and the S&P 500 moving up 1.2 percent to 1,985.05.
The largest gain among all tracker stocks came from Quiksilver Inc., up 15.2 percent to $1.90, well in advance of the 4.6 percent gain at Inter Parfums Inc., which ended the day at $28.08.
Coming off third-quarter results that topped analysts’ consensus estimates, Iconix Brand Group Inc. shares were up 4.2 percent to $39.43, followed by a 3.4 percent pick-up for Debenhams plc, to 64 pence or $1.03 at current exchange, and a 3.3 percent improvement for Guess Inc., which closed at $22.11.
Kohl’s and Coach had the first and second biggest stock declines, followed by a 4.1 percent slip for Sears Holdings Corp., to $37.42, and a 3.5 percent drop for American Apparel Inc., to 71 cents. Reflecting the pressure on midtier retailers in the wake of Kohl’s news, J.C. Penney Co. Inc. shares were off 2.9 percent to $7.43, while Luen Thai Holdings Ltd.’s shares receded just slightly less, dropping 3.1 percent to 1.55 Hong Kong dollars, or 20 cents.
Investors’ attention will be fixed on the Federal Reserve’s comments on the economy Wednesday. Its quantitative easing plan will be under review, with the program possibly discontinued if the economy is viewed as strong enough to continue recent improvement without it.