(Update stock prices at the market close throughout.)After a rocky morning, retail shares recovered in afternoon trading, resulting in several winners in the sector. Hope that banks could report strong earnings in the next few weeks and the hope of better-than-expected earnings reports in the sector, sent the S&P Retail Index up 2% to 316.48 in afternoon trading. Best Buy ( BBY) received a boost on Monday after an Oppenheimer analyst upgraded the electronic retailer to outperform from perform. Analyst Brian Nagel said the recent dip in Best Buy's share price left it undervalued, and that investors have been too quick to dismiss the potential benefits of Circuit City's bankruptcy. Shares of Best Buy grew 4% to close at $34.12. Netflix ( NFLX) was the center of a
Shares of PriceSmart ( PSMT) continued to tumble 9% to $14.71, after the company reported disappointing third-quarter profit last week. During the quarter, the company earned $8.7 million, or 30 cents per share, compared with $10.6 million, or 36 cents per share, a year earlier. Analysts had expected earnings of 33 cents. Bebe ( BEBE) rallied strongly at the end of the day to finish up 3 cents to $5.93 at the close. Last week the company posted a 29.2% plunge in fourth-quarter same-store sales. The company also predicted a lower fourth-quarter profit than expected. Roth Capital Partners analyst Elizabeth Pierce attributed the decline to merchandise misses.