STOCKS SURGE, BUT NOT RETAIL
NEW YORK — Although the major markets rallied Tuesday, retail stocks increased only slightly as investors remained nervous about the prospects of disappointing same-store sales results, which will be reported by most major stores Thursday.
Conditioned to expect bad corporate news, investors are buying up bargain-priced stocks. The activity sent the Dow Jones Industrials Average up 257.59 points, or 2.6 percent, to close at 10,102.74, its highest close in nearly a month. The Nasdaq closed up 106.27 points, or 6.1 percent to 1851.98, and the Standard & Poor’s Index gained 30.79 points, or 2.7 percent to 1168.38.
George Strachan of Goldman, Sach’s, said, “Retail stocks have held in well in a difficult market and now it looks like investors are looking to rotate into other sectors that have underperformed over the past six months.”
Retail stocks which enjoyed gains include Abercrombie & Fitch, up $1.67 to $36.15; American Eagle Outfitters, up $1.75 to $33.21; Chico’s FAS, up $2.01 to $39.02; Finlay Enterprises, up $3.13 to $13.15, and Tiffany & Co., up $1.68 to $27.77.