NEW YORK (
) -- Retail shares rallied on Tuesday, as October sales are starting off with a bang.
Sales for the first full week of October inched up 0.6%, and on a year-over-year basis rose 1%, according to the International Council of Shopping Centers and Goldman Sachs.
"Slowly, but surely, the underlying sales performance is inching higher," Michael P. Niemira, ICSC chief economist said in a statement. "The trend improvement is providing evidence that the retail sector recovery is starting to unfold."
ICSC expects sales for the month to be flat, with some upside potential.
The S&P Retail Index ended the day up 0.9% to 391.23, led by
Pacific Sunwear of California
The teen retailer was upgraded to outperform by FBR Capital Markets analyst Adrienne Tennant, who said better product focus and easier year-ago comparisons could be appealing for long-term investors.
Shares of Pacific Sunwear spiked 5.5% to close at $6.48.
also inched up 0.6% to $19.74 after an analyst raised his price target and earnings estimates.
JP Morgan analyst Charles Grom expects the department store to reports third-quarter loss between 3 cents and 5 cents a share, up from his prior forecast of a loss of 9 cents. He also raised his price target to $19 from $17.
He attributed his more optimistic outlook to the company's better-than-expected September same-store sales. Macy's posted a 2.3% slip during the month, surpassing the 4.6% decline analysts expected.
Shares of Macy's are increasing 1.6% to $19.94.
grew 1.5% to $50.34 after it announced it will offer health and beauty items online that can be delivered.
A little over a year ago, shoppers could only browse grocery, health and beauty products at Walmart.com, not make a purchase. Now they purchase thousands of these items of the site.
also revealed its newest offering on Tuesday: instant access to publications for e-reading devices on its new digital newsstand site.
Target.zino.com features digital versions of popular U.S. and international single-issue, subscription and archived issues at discounted prices.
Shares of the discounter arended the day up 1% to $50.11.
Other notable gainers include
, which rose 2% to $21.45,
, , which increased 1.8% to $27.53,
, which inclined 2% to $6.35,
Abercormbie & Fitch
, which shot up 2% to $36.36 and
, which got a 2.7% boost to close at $1.55.
There are some losers, however, the biggest of which is
, which tumbled 5% to close at $33.22.
Other decliners are:
, which fell 2% to $15.81 and
, which was off 1.8% to end the day at $38.27.
-- Reported by Jeanine Poggi in New York
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