Retail Winners & Losers: Big Bank Bounce

(Update stock prices at the market close throughout.)

After a rocky morning, retail shares recovered in afternoon trading, resulting in several winners in the sector.

Hope that banks could report strong earnings in the next few weeks and the hope of better-than-expected earnings reports in the sector, sent the S&P Retail Index up 2% to 316.48 in afternoon trading.

Best Buy(BBY Quote) received a boost on Monday after an Oppenheimer analyst upgraded the electronic retailer to outperform from perform.

Analyst Brian Nagel said the recent dip in Best Buy's share price left it undervalued, and that investors have been too quick to dismiss the potential benefits of Circuit City's bankruptcy.

Shares of Best Buy grew 4% to close at $34.12.

Netflix(NFLX Quote) was the center of a takeover rumor on Monday. Theflyonthewall.com said its 5% gain to close at $42.19 was attributable to "renewed takeover speculation."

Plus size women's apparel retailer Charming Shoppes(CHRS Quote) saw shares jump 4% to close at $3.77 after it announced its Figi's Gifts in Good Taste is no longer up for sale.

The company put Figi's up for sale last year, saying it would sell the business only at an acceptable price. Charming Shoppes said in a statement on Monday that an acceptable valuation was not achieved.

And Foot Locker(FL Quote) was up 7% to $10.38 in afternoon trading after analysts said the athletic footwear giant could gain momentum when the economy recovers.

While most were in the green, there were a few laggards.