Retail shares finished ahead 1.1 percent last week as better-than-expected third-quarter earnings reports helped the sector outperform the broader market.
With a 1 percent increase on Friday, the S&P Retail Index ended the week at 483.36. Friday’s performance paralleled the results for the week as retail advanced while the major indices tread water. The Dow Jones Industrial Average was up 0.2 percent on Friday to 11,203.55 on its way to a 0.1 percent increase for the week.
Investors focused on issues including the Irish debt crisis and uncertainty surrounding Chinese currency and inflation throughout the week, which also marked the return of General Motors to Wall Street. With retailers including Wal-Mart Stores Inc., Target Corp., Gap Inc., Limited Brands Inc. and, on Friday, AnnTaylor Stores Corp. reporting third-quarter results that met or beat expectations — and with a few boosting fourth-quarter projections — confidence about stores’ holiday prospects appeared to grow as the week went on.
Among the 172 publicly held firms monitored by WWD, 117 had increases for the week and 50 declines, while five were unchanged. During the preceding week, just 43 managed increases.
The S&P Retail Index stood ahead 17.6 percent for the year on Friday, more than twice the 7.4 percent increase registered by the Dow and the 7.6 percent gain generated by the S&P 500.
European markets had a mixed week, with the FTSE 100 in London down 1.1 percent but the CAC 40 in Paris ahead 0.8 percent. Tokyo’s Nikkei 225 enjoyed a 3.1 percent surge, while Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index declined 3.2 percent and 2.6 percent, respectively.