There may not be an immediate connection, but retail shares followed the upward trend of the market, as investors breathed a sigh of relief over Federal Reserve Chairman Ben Bernanke's testimony on the Fed's role in
Bank of America's
The S&P Retail Index gained 3.5% to 322.29, led by
Bed Bath & Beyond
, the day's clear winners.
Dress Barn announced that it would
for $157 million in stock.
The news was a positive for both Dress Barn and Tween Brands. Dress Barn saw shares jump 9% to $14.38 in afternoon trading, while Tween Brands skyrocketed 28% to $6.63.
For Dress Barn, the tween-apparel retailer is an opportunity to diversify, while Tween Brands' debt will be paid by Dress Barn and shareholders will receive a 20% premium out of the deal.
Bed Bath & Beyond rose 10.5% to $31.35 in afternoon trading, a day after the home-furnishing retailer
in the first quarter.
During the quarter, the company earned $87.2 million, or 34 cents a share, up 13% from $76.8 million, or 30 cents, in the year prior, helped by cost cuts. Analysts expected earnings of 25 cents.
J.C. Penney also received a boost on Thursday after it was upgraded by an analyst at J.P. Morgan to overweight from neutral. Shares were up 6% to $28.30 in afternoon trading.
It was hard to lose today, but sneaker giant
managed to do just that.
Shares tumbled 3% to $51.40 a day after the company reported a
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