NEW YORK (
) -- Retail stocks are regaining momentum following a selloff earlier this morning due to disappointing consumer confidence data.
The Consumer Confidence Index fell to 48.5 during the month from 53.2 in August. This is its lowest level since February. Economists forecast a reading of 53.
Retail sales are also following the same seasaw as consumer confidence. Sales for the week ended Sept. 25 rose 0.4% after falling 1.4% in the week prior, according to the International Council of Shopping Centers.
The ICSC forecasts 3% growth in chain store sales for the full month. Same-store sales are due out on Oct. 7.
Barnes & Noble
is declining 1% to $16.28 after shareholders voted against billionaire investor Ron Burkle, who was trying to get himself and nominees elected to the board of directors. Shareholders also contested his move to get rid of the poison pill, which has prevented Burkle from upping his stake in the company.
Shares of rival
are also slipping, down 0.8% to $1.21, Tuesday afternoon. The company said earlier today that it plans on opening 25 temporary seasonal stores.
Abercrombie & Fitch
announced Tuesday morning that its director, Robert Rosholt, resigned, leaving two empty seats in the boardroom.
was downgraded by Credit Suisse to neutral from outperform, citing an uncertain consumer and credit environment. Analyst Michael Exstein also cut his price target on the stock to $58 from $64. Exstein also called out Target's credit card business, which he said doesn't have sustainable growth.
Still, Target is rallying after this downgrade, up 0.6% to $54.71, in afternoon trading.
Two major retailers --
Toys 'R' Us
-- said they will be hiring an influx of employees for the holiday season. Best Buy will add 29,000 temporary workers, while Toys 'R' Us will hire 45,000.
the day's biggest gainer, surging 11.1% to $33.71, after it reported its fourth-quarter profit jumped 8% on higher prescription drug sales.
During the quarter, the drugstore earned $470 million, or 49 cents a share, on revenue of $16.87 billion.
unveiled its plan to grow revenue by $1 billion by 2015. The department store intends to do this in part through new store openings and store enhancements.
The company earmarked $160 million for store rennovations this year, and plans on making adjustments to 375 stores by 2015.
Shares of J.C. Penney are rising 1.5% to $26.07 in midday trading.**
--Written by Jeanine Poggi in New York.
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