U.S retail stocks held their ground early Wednesday, inching up 0.2 percent as global markets recovered from steep declines on Tuesday because of tensions on the Korean Peninsula and Europe’s debt problems.
The S&P Retail Index picked up 0.97 points to 441.57 by noon, extending Tuesday’s 1.4 percent rise. The Dow Jones Industrial Average increased 0.6 percent, or 63.93 points, to 10,107.68, after falling below 10,000 to a seven-month low a day earlier.
Retailers on the rise included Tiffany & Co., up 3.3 percent to $44.02, and Saks Inc., ahead 2 percent to $8.82. American Eagle Outfitters Inc. was down 14.5 percent to $13.15 after the company said second-quarter results would fall short of Wall Street’s expectations.
The general rebound was aided by a rosier outlook from the Organisation for Economic Co-operation and Development, which said the collective GDP of its 31 member countries would rise by 2.7 percent this year, up from the 1.9 percent the group predicted in November.
But the good news came with a warning.
“This is a critical time for the world economy,” said Angel Gurría, the group’s secretary-general. “Many OECD countries need to reconcile support to a still fragile recovery with the need to move to a more sustainable fiscal path. We also need to take into account the international spill-overs of domestic policies.”
Markets in Asia and Europe rebounded from Tuesday’s decline. The Hang Seng Index rose 1.1 percent to 19,196.45 in Hong Kong and the Nikkei 225 advanced 0.7 percent to 9,522.66 in Tokyo.
As the trading day came to a close in Europe, the CAC 40 was up 2.3 percent to 3,408.59 in Paris, the FTSE 100 was up 2 percent at 5,038.08 in London and the DAX was ahead 1.6 percent to 5,758.02 in Frankfurt.
For complete coverage, see Thursday’s issue of WWD.