Retail Winners: Walgreen, Gymboree

(Retail winners and winners losers article updated the Home Depot downgrade.)

NEW YORK (TheStreet) -- Retail stocks are rallying on positive ISM data and Bank of Japan's move to cut its overnight call rate.

The positive economic news is sending the S&P Retail Index up 1.6% to 461.52, along with the broader market.

Retailers are set to report September same-store sales on Thursday, and expectations are a mixed bag.

Cramer: Wal-Mart Is a Buy

The International Council of Shopping Centers reported that weather dragged down sales at the end of the month, with sales declining 0.8% for the week ended Oct. 2.

The firm is forecasting total sales for the month will rise between 2.5% and 3%.

Walgreen (WAG) is up 3.6% to $34.29 after it reported a surprise 0.4% uptick in September same-store sales. Wall Street had forecast a decline of 1.1%.

Gymboree (GYMB) is advancing following a report from the New York Post revealing the company hired Goldman Sachs (GS) to facilitate a possible sale. The Post quoted an unnamed source, who said several private-equity firms have expressed interest in the children's retailer, including Apollo Management.

Gymboree is seeking a price of $55 to $60 a share, the Post reported. Shares of the company are gaining 5.9% to $51.07 in morning trading.

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