FEDERAL RESERVE’S MODEST RATE HIKE CALMS INVESTORS
NEW YORK — Investors breathed a sigh of relief, and the Dow ran up 227.1 to 10,907.34, as the Federal Reserve opted to raise short-term interest rates no more than the anticipated quarter point.
After the market closed, Oakley said its first-quarter earnings will likely beat Wall Street’s current expectations by 2 cents a share. For the quarter ending March 31, Oakley predicted earnings of at least $3.5 million, or 5 cents a share, on revenues between $55 million and $60 million.
Also late Tuesday, watchmaker Movado said it expects to report a fourth-quarter loss of between $8.7 million and $9.1 million after one-time charges of $8.3 million or 46 cents a share. Including the charges, Movado expects to lose between 67 cents and 71 cents a share in the quarter, well below Wall Street’s expectations of a 46-cents-a-share profit.
While Oakley climbed 1/2 to 9 and Movado rose 7/16 to 17 5/16, BeautiControl rose 1 1/32 to 3 1/8 after reporting quarterly earnings of 14 cents a share versus a 12-cents-a-share loss in last year’s quarter.
Among specialty retailers, Talbots gained 2 11/16 to 54; Gap picked up 1 9/16 to 49 1/4; Gadzooks gained 2 1/16 to 21; United Retail rose 1 15/32 to 10 3/4, and Lands’ End ran up 2 1/4 to 55 1/2. Federated, Sears, Kohl’s, Wal-Mart and Ross Stores were among retailers finishing at least a point higher.