Index ushers 2011 with renovated spirits, upping by 5.97 points and defying the
general tax rises by closing the trading session in 1255.37 Tuesday.
Lululemon Athletica fell 4.50% to $68.36. The stock opened at $71.55 and is trading within the range of $68.26-$71.74. Another American company showing unusual trading volume was Deckers Outdoor Corporation went down 2.24% to $79.41. The average daily volume of the stock is 2.15 million shares. At current market price, the market capitalization of the company stands at $3.06 billion.
In Europe, London saw a storming start to 2011 as the FTSE moved above the 6,000 level in the year’s first trading session to close at a 31-month high. The FTSE 100 moved up 1.9 per cent or 113.93 points to close at 6,013.87, its highest level since June 2008, buoyed by rises on US and European exchanges on Monday when the LSE closed.
“There is still potential for shocks in the short-term when the major retailers unveil their Christmas trading numbers – but for now investors have been heartened by the strong start made to 2011.” said Heusen analyst. "People have tended to shop during the times they need to, like holidays or back to school," said Nomura analyst Paul Lejuez. "During off periods, they haven't been coming out." "A good December might not mean a great January, February, March," he added.
On other hand, Wall Street analysts expect top U.S. chains to report that sales at stores open at least a year, or same-store sales, rose 3.3 percent in December, according to Thomson Reuters data. That follows a 6 percent increase reported for November.
But that strong end to the holiday season has been largely priced into stocks, said Manning & Napier analyst Walter Stackow. Investors are looking for companies to increase their earnings forecasts as a sign that the sales were not "bought" with unexpected margin-sapping discounts.Those companies' shares are likely to rise, Stackow said. Shoppers turned out in greater numbers this year, buoyed in part by pent-up demand after two seasons of frugality and a general sense that the economy is finally improving.