Why Nordstrom, Dollar General, and Foot Locker Rose Yesterday
Shares of Nordstrom (NYSE: JWN), Dollar Tree (NASDAQ: DLTR), and Foot Locker (NYSE: FL) were among a number of retail names making big gains on Monday as the sector got a boost from several states beginning to reopen their economies or announcing plans to do so.
Last Friday, Georgia allowed nonessential retail stores and businesses including gyms and barbershops to open, and on Monday restaurants and movie theaters were given the green light to open their doors. Among other states making similar moves were South Carolina, Tennessee, Alaska, Oklahoma, and Minnesota. Texas is planning to begin reopening its economy on May 1, and even California reopened some of its beaches over the weekend.
Investors not surprisingly viewed these moves as positive steps, and a sign that the worst of the crisis is behind the retail industry. As a result, sector stocks gained broadly, with the S&P SPDR Retail ETF (NYSEMKT: XRT) finishing Monday up 5.3%, while the S&P 500 tacked on 1.5%.
Source Fool.com
