Retail Stocks Soar Into the Holidays as Gap Leads Wall Street Rally

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Retail Stocks Soar Into the Holidays as Gap Leads Wall Street Rally
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Gap led retail stocks higher on Friday as investors warmed to the sector after seeing some third-quarter retail reports.

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Apparently the retailer, one of the pioneers of the movement toward casualization, has some pretty good coattails. Or at least Gap’s rediscovered confidence reinforced promising quarterly reports from across fashion and investors just cut loose.

“Companies on earnings calls so far have been very clear that as the weather broke, the trends began to improve,” he said. “So I think the weather fear is played out.” The economy dodged the much-feared recession and unemployment has remained low, but the price inflation that built up after the pandemic has hurt consumers’ wallets. After a year of uncertainty, President-elect Donald Trump is headed back to the Oval Office and even though that brings the threat of new trade wars and other potential disruptions, retailers and consumers at least know what path they’re taking into the future.

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