U.S. stocks resumed their streak of record highs as the Dow and S&P 500 each set new intraday peaks.
The S&P 500 rose 13 points to 2,166, the Dow Jones Industrial Average increased 128 points to 18,501 and the Nasdaq climbed another 33 points to 5,039. The S&P Retail ETF added 33 cents to sell at $44.19.
In economics news, the producer price index rose 0.5 percent in June, topping the estimate for an increase of 0.3 percent. Margins for apparel, footwear and accessories retailing dropped 2.6 percent. Prices for women’s, girls and infants’ apparel fell 0.8 percent from May to June, but increased 0.1 percent over June 2015. Apparel wholesaling prices fell 0.1 percent form May and declined 1.1 percent from June of last year. Apparel retail prices plunged 4.2 percent from May, but actually jumped higher by 2.3 percent over last year.
The latest weekly jobless claims were 254,000, beating the forecast for 265,000. The continuing claims rose to 2.15 million from 2.12 million.
Coach Inc. named Wendy Kahn, a former Valentino executive, as chief executive officer and brand president of luxury shoe brand Stuart Weitzman. Kahn will succeed Wayne Kulkin effective Sept. 13 and Kulkin will continue as a consultant to Coach. The accessories group purchased the shoe company in order to pump up sales and so far, it’s been a good move. Kahn is ceo of Valentino USA and has held positions at LVMH Moët Hennessy Louis Vuitton, which is in step with Coach’s move to reestablish its luxury reputation. Coach stock moved higher by 7 cents to $42.08.
Cabela’s Inc. stock is rising by over 3 percent to $54.31 on reports that Bass Pro shops is close to buying the outdoor retailer. Private equity suitors Apax Partners and TPG Capital have apparently dropped out of the process. Supposedly, Goldman Sachs was working with Bass Pro Shops to put together a bid. In a recent filing, Cabela’s said it might just sell off its credit card business, but now it looks like the whole operation could be sold. Cabela’s was founded by two brothers in 1961. Richard Cabela died in 2014 and Jim Cabela is not involved in the day-to-day operations.
Following the market close on Wednesday, teen retailer Aéropostale Inc. reported a loss of $58.4 million in its fiscal first quarter, or 73 cents a diluted share. Net sales fell 6.3 percent to $298.6 million from $318.6 million. Aéropostale has been in bankruptcy court since May as it restructures its business. The stock is trading in the pink sheets and lately traded at a mere 7 cents a share. Aéropostale said it believes smartphones and apps are also competing for teens’ discretionary spending.