Retail shares rallied more than 2 percent in morning trading Tuesday following an unexpected surge in The Conference Board’s Consumer Confidence Index.
The S&P Retail Index was up 8.60 points, or 2.4 percent, to 369.26, outpacing gains of less than 1 percent by the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite.
Fueling the rally was The Conference Board’s report that its Consumer Confidence Index moved up to 54.1 in August, halting two months of declines and surpassing expectations among analysts of a 47.5 showing. The index had fallen to 47.4 in July and 49.3 in June.
While the Present Situation Index rose to 24.9 from 23.3 last month, the Expectations Index leaped to 73.5, its highest level since the onset of the recession in December 2007. It registered 63.4 in July.
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Markets also appeared to be reassured by President Obama’s announcement that Ben Bernanke would be appointed to a second term as chairman of the Federal Reserve.
Shares of Casual Male Retail Group Inc. soared 25.1 percent in morning trading, to $2.74, after the retailer of men’s big and tall apparel reported that its second-quarter profits nearly doubled as cost cuts and inventory control allowed it to overcome a 13.4 percent decline in sales.
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Also among the double-digit gainers on Tuesday morning was Chico’s FAS Inc., whose shares advanced $1.20, or 10.1 percent, to $13.09. The Fort Myers, Fla.-based specialty chain saw its second-quarter earnings more than double to $14.9 million as sales picked up 3.6 percent to $419.9 million.
Specialty stores generated the biggest increases in Tuesday morning trading, but gains weren’t relegated to them. Dillard’s Inc. shares rose 7.2 percent to $11.67, Saks Inc. added 6.1 percent to $6.27 and Macy’s Inc. tacked on 5.4 percent to $16.14.
For complete coverage, see Wednesday’s issue of WWD.