NEW YORK (
) -- Retail stocks are rallying along with the broader market, following a rebound in durable goods spending.
The S&P Retail Index is up 2.5% to 458.44, led higher by
. The athletic footwear maker and retailer hit an all-time high this morning of $81.70, following Thursday's upbeat quarterly report.
During its first quarter, Nike saw profit jump 9% to 599 million, or $1.14 per share, while revenue climbed 8% to $5.18 billion. Both numbers beat Wall Street's estimates.
But the most promising news came in pipeline orders, which the company said rose 10%, the biggest increase in over a decade.
Currently, shares of Nike are up 4.2% to $80.95.
is seeing a nice uptick after it announced that it will begin carrying Apple's iPad in October. Similar announcements have already been made by rivals like
. Shares of Target are gaining 2.2% to $54.97 in afternoon trading.
is receiving a boost after J.P. Morgan upped its estimates and price target for the Internet retailer. Analyst Imran Khan raised his 2010 forecast by a penny to $2.57 a share and to $3.64 a share for 2011, from prior outlook of $3.40. He also expects 2012 profit to jump to $4.97 a share.
Khan kept his overweight rating on the stock, but lifted the price target to $198 from $154. "Margins can improve as Amazon benefits from growing third-party sales," he wrote in a note. "Further, as the company gains scale within more categories on its non-US sites, its International margin should start to catch up to domestic levels. Finally, we continue to see Fulfillment by Amazon as a revenue growth catalyst as well as a margin driver."
Shares of Amazon are advancing 4% to $158.99 in morning trading.
reached yet another deal to expand its streaming content, this time with NBC. The company said on Friday that it will partner with NBC, which is owned by
, to stream television series from its cable and broadcast networks.
Netflix shares are gaining 3.3% to $165.75 in morning trading.
said that it reached an agreement with
to renew its private-label credit card. This is especially significant since this credit card support nearly half of Zale's U.S. sales.
Citibank previously told the company that it would not renew the credit card deal when it expires in March 2011 because Zale has been unable to meet the minimum sales level required. So this move should come as somewhat of a relief for investors.
Other notable gainers include
, which is surging 6.2% to $20, and
, which is increasing 5.4% to $1148.
One of the only retailers in the red is
, which is plunging 9/8% to $14.15 in morning trading, after it reported lower-than-expected second-quarter profit.
While Finish Line did manage to reverse last year's loss, it failed to restock popular items, which put a dent in revenue.
--Written by Jeanine Poggi in New York.
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