Retail stocks rose 0.6 percent Friday, but not enough to push the sector into positive territory for the week.
This story first appeared in the June 28, 2010 issue of WWD. Subscribe Today.
The market remained volatile as Washington lawmakers hashed out their financial reform package, the economy continued to waver and investors fretted over the impact of a possible appreciation of the yuan, which could make it more expensive to buy Chinese goods.
The S&P Retail Index advanced 2.34 points to 407.72, but lost 5.6 percent for the week, the third week of the last four resulting in a decrease. Investors were quick to jump out of stocks, and two of last week’s five sessions resulted in declines of more than 2 percent. Of the 172 stocks tracked by WWD, 152 declined last week, while four were flat and only 16 rose.
The Dow Jones Industrial Average slipped 8.99 points to 10,143.81 Friday, making for a 2.9 percent decline for the week.
Shares of American Apparel Inc. shot up 10.2 percent Friday to $1.95 in what was a busy week for the company, headed by chief executive officer Dov Charney. The firm amended its credit agreement, easing a covenant while raising the interest rate. And financier Ronald Burkle of The Yucaipa Cos. LLC told the Securities and Exchange Commission that he had acquired 4.3 million shares of the firm, giving him a 6 percent stake.
Among the other retail gainers Friday were Charming Shoppes Inc., up 10.9 percent to $4.07; Urban Outfitters Inc., 4 percent to $36.06; Hot Topic Inc., 3 percent to $5.48, and Saks Inc., 2.8 percent to $8.23.
Last week, the Federal Reserve downgraded its assessment of the economy, in part due to pressures from Europe’s debt troubles.
And personal consumption expenditures were not as strong as previously reported in the first quarter, prompting the Commerce Department to revise its reading of gross domestic product growth down to an annual rate of 2.7 percent from 3 percent. The U.S. economy grew by 5.6 percent in the fourth quarter.
International markets were mostly off for the week, particularly in Europe. The CAC 40 fell 4.5 percent to 3,519.73 in Paris as the FTSE 100 slipped 3.9 percent to 5,046.47.
The Nikkei 225 dropped 2.6 percent to 9,737.48 in Tokyo as the Hang Seng Index rose 2 percent to 20,690.79 in Hong Kong.