NEW YORK (

TheStreet

) -- Retailers are rallying after October sales grew more than expected.

The

S&P Retail Index

is rising 1.3% to 410.53, after the Commerce Department said

sales for the month jumped 1.4%

, better than the 1% uptick analysts' forecast.

Women's retailers are seeing some the biggest gains after

AnnTaylor Stores

(ANN)

was upgraded to buy from hold by Jesup & Lamont.

Shares of the company are spiking 8.9% to $14.13 in afternoon trading and sent up its rivals.

Chico's

(CHS) - Get Report

is advancing 6.5% to $13.71,

Charming Shoppes

(CHRS) - Get Report

is soaring 7.4% to $5.25 and

Talbots

(TLB)

is spiking 11.5% to $8.51.

Also in the spotlight is teen retailers

Pacific Sunwear of California

(PSUN)

and

Hot Topic

( HOTT).

PacSun, which is slated to report its third-quarter results at the close, has seen some merchandise improvement. Analysts expect the company to lose 20 cents a share during the quarter.

Shares of the surf-inspired retailer are leaping 6.1% to $5.08 in afternoon trading.

Hot Topic is set to report its results on Tuesday, and is up 4.7% to $6.87.

Other notable movers include

Office Depot

(ODP) - Get Report

, which is up 5% to $6.90,

Steven Madden

(SHOO) - Get Report

, which has added 6.3% to $40.30 and

American Apparel

(AAP) - Get Report

, which is surging 11.7% to $3.35.

One of the only retailers in the red is

Lowe's

(LOW) - Get Report

, which is falling 0.5% to $21.74, after posting a

30% drop in third-quarter earnings

.

Revenue also slipped 3% to $11.38 billion from $11.73, while same-store sales sank 7.5%.

-- Reported by Jeanine Poggi in New York

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