Retail stocks saw a big boost today as the Dow Jones Industrial Average and the broader S&P 500 rallied on news that Germany would help bail out Greece — as long as the troubled country takes on economic reforms.
As a result, the Dow gained 1.3 percent to close at 18,000 while the S&P 500 finished up 1.2 percent to 2,105. The S&P Retailing Industry Group index rose 1.3 percent to close at 1,141.
The 100-issue WWD Global Stock Tracker gained 1 percent to 112.56.
Not all retail shares were lifted during the rally. Shares of Sears Holding Corp. continued to fall for a second day on weak quarterly results. At the bell, the stock lost 11.5 percent to $29.52. Shares of most companies, though, had gains between 1 and 2 percent.
Target Corp.’s stock closed the day up 1 percent to $79.67 after the company said it was expanding its share repurchase program. Dividends will increase 7.7 percent while the buyback program doubles to $10 billion. Joseph Feldman, research analyst at Telsey Advisory Group, said in a research report that Target’s “capital deployment activity” signals “confidence in its turnaround plan.”
Feldman said the mass retailer’s recent quarterly results provide “evidence that the company is beginning to benefit from meaningful changes in merchandising, marketing, and store presentation,” he wrote. “The company is benefiting from the focus on signature categories (style, baby, kids and wellness), which in [the first quarter] generated comps that were more than double the company average.”