WAH MONDAY KLCI WILL COME LIAO,
CONGRATULATION SIFU SAM ON UR CITI 4.14
Aug 7, 2009, 10:34 a.m. EST
NEW YORK (MarketWatch) -- Retail stocks rose Friday after job losses slowed in July and the unemployment rate unexpectedly fell, suggesting the troubled job market may have hit a bottom.
The S&P Retail Index (RLX 370.22, +10.50, +2.92%) gained 1.6% to 365.44.The unemployment rate declined to 9.4%, the Labor Department estimated Friday. U.S. nonfarm payrolls fell by 247,000 to 131.5 million in July, the 19th consecutive month of job losses, but less than economists' estimates of a 275,000 decline. While most industries continued to shed jobs in July, the decline was at a much slower pace than the rate in the autumn and winter. See full story.The recovery in the job market is considered key to lifting consumer sentiment and making shoppers comfortable about opening up their wallets for nonessential items, analysts said.Investor sentiment for the retail sector also was bolstered by a smaller-than-expected decline in U.S. retailers' July sales, suggesting to some that things may be finally turning for the industry. See full story.Urban Outfitters Inc. (URBN 28.09, +1.81, +6.89%) shares rose 3.6% and J.C. Penney Co.(JCP 33.59, +2.19, +6.98%) was up 3.3% after both stocks were upgraded.Barclays Capital lifted its rating on Urban Outfitters to equal weight after the company's second-quarter same-store-sales decline was smaller than expected. Analyst Jeff Black said he sees the decline slowing before sales return to an estimated 2% increase in the fourth quarter. He said the company also has managed its inventory and expenses well.J.C. Penney was raised to buy from hold by Standard & Poor's after the department-store operator narrowed its loss forecast.Kenneth Cole Productions Inc. (KCP 9.41, +1.01, +12.05%) shares surged 11% after its second-quarter loss was much smaller than it had projected, as it better controlled inventory and costs.Target Corp. (TGT 42.51, +0.80, +1.91%) shares rose 1.5%. The No. 2 U.S. discount retailer said it will build and manage its own platform for Target.com after its contract with Amazon.com Inc. (AMZN 85.30, +0.83, +0.99%) expires in 2011."It's in Target's best interest going forward to assume full control over the design and management of Target's e-commerce technology platform, fulfillment and guest services operations," said Steve Eastman, president of Target.com.Among other gainers, No. 1 retailer Wal-Mart Stores Inc. (WMT 49.28, +0.30, +0.62%)shares inched up 0.6%, while Sears Holdings Corp. (SHLD 76.65, +3.93, +5.40%) climbed 4%.
Andria Cheng is a MarketWatch reporter based in New York.
1 comments:
Thank you wallis for your praise