Retail Winners: AnnTaylor, PacSun Surge

NEW YORK (TheStreet) -- Retailers are rallying after October sales grew more than expected.

The S&P Retail Indexis rising 1.3% to 410.53, after the Commerce Department said sales for the month jumped 1.4%, better than the 1% uptick analysts' forecast.

Women's retailers are seeing some the biggest gains after AnnTaylor Stores(ANN Quote) was upgraded to buy from hold by Jesup & Lamont.

Shares of the company are spiking 8.9% to $14.13 in afternoon trading and sent up its rivals. Chico's(CHS Quote) is advancing 6.5% to $13.71, Charming Shoppes(CHRS Quote) is soaring 7.4% to $5.25 and Talbots(TLB Quote) is spiking 11.5% to $8.51.

Also in the spotlight is teen retailers Pacific Sunwear of California(PSUN Quote) and Hot Topic(HOTT Quote).

PacSun, which is slated to report its third-quarter results at the close, has seen some merchandise improvement. Analysts expect the company to lose 20 cents a share during the quarter.