Earnings for high-end department store Macy’s (NYSE: M) shot up 38% in the first quarter, but an unimpressive full-year outlook sent the stock spiraling downward.

April sales numbers were mixed, but Nordstrom (NYSE: JWN) and Limited Brands (NYSE: LTD) were among the month's big winners.

Winners and losers from a month in which U.S. retail sales results were mixed.

Tech stocks are down this morning on news that electronics store sales were down 3.9 percent in December.

Retail sales were up 3.1% in November thanks in part to a record Black Friday turnout. Who were the month's biggest winners and losers among publicly traded companies?

These four retailers epitomize the high-end and the low-end and by looking at the fundamentals of the four, they all look pretty similar.

Shoppers were out in full force on Black Friday, as the day after Thanksgiving set a new record for retail sales. Two companies in particular benefitted, sending their stocks soaring in early trading today.

These three stocks will likely benefit from the busiest shopping day of the year.. Black Friday.

Bloomberg is reports that holiday retail sales jumped 5.5%, the biggest gain in 5 years. Macy's (NYSE:M) and Abercrombie & Fitch (NYSE:ANF) were among the big winners, but it seems as though all the upside has already been had in the retail stocks. My favorite, Kohl's (NYSE:KSS), has done anything since its mid-November jump.

It should be clear from the retail sales numbers that Americans have gotten more comfortable with the U.S. economic recovery. While we certainly can't say the economy is hitting on all cylinders, it has stabilized and growth forecasts are on the rise.

The last company to revolutionize counter-top beverage machines saw its stock skyrocket more than 10,000 percent. While that return didn't materialize overnight (it took a decade) the company, Green Mountain Coffee Roasters (Nasdaq: GMCR), is still going strong.

In the quarter ended June 26, 2010, the company’s sales surged 85 percent year-over-year.

Green Mountain Coffee Roasters has enjoyed rapid growth by using the razor-razorblade business model - a strategy in which one good is sold at a discount while the second dependent good is sold for a tidy profit.

I want to start this week by returning to my comments from Friday. You'll recall I discussed a few events that might sap the bullish momentum from this rally and send stock prices lower. I mentioned inflation, oil prices and debt at the state level as potential speed bumps.

I'm sure we could come up with a few other bearish stories to keep an eye on. But the point is, while we should always be aware of threats to prevailing market sentiment, it is not time to get positioned for them.

One of the fastest moving sectors in the small-cap universe has been regional bank stocks. This week alone stocks like Frontier Financial (NASDAQ: FTBK), Hampton Roads Bankshares (NASDAQ: HMPR), and Bank of Granite (NASDAQ: GRAN) are moving sharply higher on high volume as traders and investors alike begin to see stabilization in the sector. Many small-cap bank stocks were priced for failure, and when the probability of bankruptcy declines, the surge in share price can be enormous.

If you dip a toe and start buying shares in stocks in this sector, be sure you do some due diligence and research the stock first. Financial stocks require their own type of analysis such as looking at reserves for loan losses, capital levels, and non-performing loans. But now is a good time to begin assembling a watch list. There will still be plenty of time to get into the best banks and those that survive are likely to see their share prices trend higher as they get back to full health.

Americans may have had a few days off for the Thanksgiving holiday, but that doesn’t mean it was an uneventful week around the world.

The big news from Thursday came out of Dubai, one of seven semi-independent emirates that make up the United Arab Emirates (UAE) federation. Dubai has been the poster child for excess development, funded by oil revenues and inflated real estate values. It seems the emirate is suffering from an all too familiar overindulgence: too much debt associated with real estate development.

Dubai World, a state run fund, asked creditors if it could delay interest payment for six months on $60 billion. News of the potential debt default sent global markets sharply lower Friday, with Asian indices dropping nearly 6% and the Dow opening over 200 points lower. By the end of the session however, most of the reaction had been muted and while stocks in the U.S. closed lower, Europe finished higher by 1%.

There can be no doubt that Dubai over did it. Dredging ocean floors to build palm tree-shaped islands, indoor ski resorts, and the tallest building in the world are the very definition of excess...

Third Quarter earnings can't get here quickly enough for me. We need some new information to support the Cash for Clunker Stock rally. And I think earnings season is our best chance to see new life breathed into stock valuations.

It's no surprise that investors are growing tired of the flip-flopping economic data. Unemployment claims come in better than expected one week, and then worse than expected the next. Manufacturing data looked promising last month, this month, not so much. Housing data is doing the same non-rhythmic dance.

Basically, new economic data is showing the brutal downward-sloping trendline of previous economic data has been broken. But we haven't established a new uptrend for economic data yet. And if you remember how the stock market gyrated during the "jobless recovery" of 2004, you know it can take a while for data like unemployment to get on a positive track.

*****You might be wondering why I would look to earnings to help reinforce the idea that the US economy is improving and buying stocks is a good idea. After all, many analysts are skeptical that Second Quarter earnings growth, which was largely based on cost-cutting measures, will continue into the Third Quarter on the back of rising revenues...

Small-cap stocks pushed higher Friday, lifted by a rise in commodity markets, which in turn provided a lift to commodity-themed stocks. Energy markets were a key component on the commodity rise, with crude oil prices up 6.6%, helping offset weakness in financial shares. Volume was extremely light Friday as many market participants took advantage of Thursday’s Christmas holiday to carve out a four-day weekend. The Russell 2000 (NYSE:IWM) closed up 6.28, or 1.34%, at 476.77, and is now down 38% for 2008. The Dow is off 36% for the year, while the S&P 500 is down 41%.

Today’s light volume, limited range affair was remarkably similar to Wednesday’s session, which saw the thinnest one-day range since the whole stock market collapse kicked into gear back in mid-September. On a weekly basis, this was also the tightest range seen in several months.

When looking at sector activity today, commodities were a recurring upside theme, with metals and mining firms, gold stocks, aluminum, oil and gas drillers ranking among the best performing sectors. The U.S. dollar was down modestly against the euro, but this appeared to be more a push for commodity markets than simply a value play based on foreign exchange movement. The Commodity Research Bureau Index was up about 1.3% on the day, with energy, grains and metals leading the way. Gold prices were up 2.7% to a weekly high, and grain markets took flight amid concerns about . . .

Small-cap stocks struggled again on Tuesday, unable to shrug off awful data on home sales, which were so bad they defied claims that the housing market has bottomed. Retailer shares also were a drag on the market as stores are getting a chilly reception this holiday season from consumers. The Russell 2000 (NYSE:IWM) closed down 6.44, or 1.35%, at 468.64, and is now down 39% for the year. Meanwhile, the Dow is off 37% for 2008, and the S&P 500 is down 41%, as the stock market limps into the final six trading sessions of a year that could be the worst since the Great Depression era.

With a short trading week in tow, the market is getting force-fed a sizable batch of economic data into just a two-day window. The first run of data today had mixed signals; on a positive note, consumer sentiment perked up more than expected in the latest Reuters/Michigan sentiment survey, rising to 60.1, compared with a consensus projection of 58.6. While that’s still a low reading historically, it raises some hope that sentiment is finally on an upswing.

As for the “not-so-good” economic news, the latest picture of the nation’s housing market came in much worse than feared. New home sales tumbled 2.9% to an annualized rate of 407,000 units, below the forecast of 415,000 units. But the really bad news was seen for existing home sales, which make up the lion’s share of housing activity. Existing home sales crumbled 8.6% for the worst decline in 11 years and the rate plunged to 4.49 million units – way below the projection for 4.93 million units. Even more disheartening is that the median home price fell 13.2%, the largest percentage decline in 40 years of collecting data. And it’s not like the bargain basement prices cleaned up inventory either – in fact, the supply of homes is still pegged at 11.2 months (16.7 months for condos). There are many market watchers who believe that the stock market won’t be able to find a bottom until the housing market turns around and these numbers certainly didn’t instill confidence on that front.

“Existing home sales peaked during the summer of 2005 and fell steadily through September 2007. From then through October 2008, home re-sales had been relatively flat, suggesting a bottom may have been reached. However, sales slumped again in November, reflecting the effects of the credit crunch,” Steven Wood, chief . . .

Small-cap stocks turned lower into mid-session trading, unable to sustain a mild morning rise as ongoing worries about the economy came back to the forefront following dreadful data on home sales. As expected, homebuilders were among the hardest hit stocks so far today, with retailers, banks and auto manufacturers also acting as a drag on the market. At 12:49 p.m. ET, the Russell 2000 (NYSE:IWM) was down 7.79, or 1.64%, at 467.28.

Existing home sales, which account for the overwhelming majority of activity, plunged 8.6% to an annual rate of 4.49 million units, far below the projection of 4.93 million units. What’s more, the price on homes tumbled 13.2%, the biggest percentage decline in 40 years. The ISE Homebuilders Index tumbled 3%, outpacing the overall market slide by a wide margin. Among small-cap homebuilders, Centex Corp. (NYSE:CTX) was off 4.1%; KB Home (NYSE:KBH) was down 3%; and Lennar Corp. (NYSE:LEN) was down 4%.

The worst performers so far today have been the automakers, with General Motors Corp. (NYSE:GM) down 15% and Ford Motor Co. (NYSE:F) off 16% following news that their credit ratings were slashed. The PHLX Retail Index was down 1% at midday, while the S&P Retail Index was off about 0.5%. Big department stores were among the worst sector groups today, with Macy’s Inc. (NYSE:M) sinking 5.5%.

The ongoing fretting about the economy pulled down crude oil prices, which slipped below $39 a barrel, off about 3.7% at midday. Energy shares weren’t as weak as the cash market, but were still down about 0.9%, with oil and gas drillers among the weaker performers.

Financial shares were holding up reasonably well, but banks were a noticeable source of strain in the financial arena. The KBW Banking Index was off . . .

Small-cap stocks rejected a morning pullback to close higher on the day, backing up the euphoric FOMC rate cut rally with an impressive showing given early weakness. Tuesday’s FOMC rise was powered by financial and homebuilder stocks, while today’s climb branched out to retailer, selected commodity and telecom names. The Russell 2000 (NYSE:IWM) closed up 3.75, or 0.78%, at 486.59 and is now down 36% for 2008. Meanwhile, the Dow was down 1.12% on the day, and is down 33% for the year, while the S&P 500 was down 0.96% Wednesday and down 38% for 2008.

Action today was noticeably calm after the big rate cut rally Tuesday. Investors were likely pondering just how the Federal Reserve would bolster the economy now that interest rates for short-term loans from the government are basically at zero. One clear path would seem to be buying longer-dated instruments, and Treasury markets were higher throughout the day, although down quite a bit from the morning rise when equities were on thinner ice to start the session.

On the retailer front, Macy’s Inc. (NYSE:M) jumped some 18%, leading the S&P Retail Index to a decent 1.8% gain on the day. Small-cap firms such as Abercrombie & Fitch Co. (NYSE:ANF) rose 3.9%. Retail sales reports have been spotty through this difficult holiday season, but Best Buy Co. Inc. (NYSE:BBY) shot higher Tuesday ahead of the FOMC news on a solid earnings report.

Selected commodity areas provided support to the stock market today, with metals, mining, gold and steel companies counted among the top performing sectors. Some of the bullish edge may have been taken off commodities however as crude oil prices plunged this afternoon, sinking some 8% to the lowest level in more than four years. The sell-off in crude took place right in the face of an announced production cut by OPEC leaders. Perhaps the sting of OPEC’s proposed cut was limited by the fact that non-members Russia and Mexico did not weigh in to support a pullback in production. Interestingly, even though crude oil prices slumped to four-year lows, . . .

What looked like a sleepy, mild opening dip turned into an ugly downside press, with small-cap stocks pulled down this morning by sloppy corporate profit reports, declines in Asian equities and yet another weak tone on the commodities front. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 6.28, or 1.30%, at 476.00, slipping through intraday chart support along the 480 line.

Economic news overnight out of Europe was bleak, with eurozone industrial production coming below the forecast and the Bank of England projecting a sharp economic contraction next year. Despite the gloomy news, European shares weren’t taking a big hit, but they weren’t exactly charging higher either and for the most part turned lower ahead of the U.S. open. Asian stocks slipped about 1.4% overnight, including a 3.1% slide in India and a 1.4% slump in Japan.

There are no economic reports on tap today in the United States, but banks and government offices are back at work today after the Veteran’s Day holiday Tuesday, which could help volume levels. The international trade data Thursday morning could spark volatility in foreign exchange markets, but the big data event this week comes with Friday’s retail sales report. Treasury Secretary Henry Paulson will hold a media briefing this morning to discuss the $700 billion rescue plan, and comments from that press conference could move financial stocks and the market in general. The presser is slated for 10:30 a.m. ET.

Speaking of retail sales, the big drag on market psychology early today came from electronics giant Best Buy Co. Inc. (NYSE:BBY) which dramatically slashed the forecast for 2009, yet another numbing sign that companies are girding for a very difficult consumer spending environment not just now, but for several months to come. BBY shares were off 10% shortly after the open.

Other individual stocks taking a hit from soft earnings/outlooks this morning include Intrepid Potash Inc. (NYSE:IPI) as the fertilizer firm missed the estimate . . .

Few can top G-III Apparel Group’s (Nasdaq:GIII) stable of trendy brands, from Calvin Klein to the newly acquired Andrew Marc. Bred for growth, this clothes horse is racking up sales in an economy only a mudder could love.

G-III’s strategy is to load up on acquisitions and licenses, providing a range of high-quality clothes to retailers — coats, jackets and pants, and women’s wear, such as suits and dresses. It makes and sells clothes under licensed, proprietary and private retail brands to retailers such as Macy’s (NYSE:M) and Nordstrom (NYSE:JWN). G-III’s made four acquisitions since mid-2005, including Andrew Marc in February. That purchase brought the brands Andrew Marc and Marc New York into the fold, along with outerwear licenses for the Dockers and Levi’s brand.

Sales — almost all of which are in the United States — have been on a tear. Revenue rose 35% to $113.5 million in the second quarter through July, from the same period in 2007. The company sported a loss in the quarter, attributed to seasonal weakness at the newly acquired Andrew Marc and its Wilsons outlet chain. G-III lost $0.23 per share, compared with a loss of $0.05 the previous year.

Still, G-III plans on eclipsing fiscal 2008’s performance, when sales grew 21.5% to $519 million and earnings per share rose 11.2% to $1.05. Guidance calls for earnings to increase to $1.35 to $1.40 per share in the 2009 year through January, and revenue to climb to $730 million.

With a market value of $316 million, New York-based G-III closed Wednesday at $19.13 per share, near the top of a 52-week range from $10.73 to $21. That puts the P/E at 13.7 based on the average analyst estimate of $1.39 for this . . .

Small-cap stocks closed higher Wednesday, notching an impressive upside move given a sharp increase in crude oil prices, tame economic data, financial share erosion and concern about retail spending patterns. Still, a boost from technology shares and solid investor appetite for riskier small-cap fare won the day. In the end, the Russell 2000 (NYSE:IWM) gained 2.75 or 0.37%, to 747.69.

Once again, small caps were strong relative to the Dow and S&P 500, which were pulled down by struggling large-cap banks, big manufacturing firms and losses in large retailer names. For the day, the Dow was off 0.94% to 11,532.96, and is down 13% for the year. S&P 500 futures were only down 0.29% at 1,285.83, and are off 12.4% for the year. Meanwhile, small caps continue to be the relative safe-haven this year, off only 2.3%.

Stocks were impressively resilient in the face of a huge bounce in crude oil futures, which rallied some $3 dollars a barrel, or 2.65%, to $116 as a surprise drawdown in weekly stocks added to concerns about conflict between Russia and Georgia. Crude oil stocks dropped some 400,000 barrels, roughly double the forecast, and President Bush authorized American military forces to deliver humanitarian aid to Georgia while telling Russia it “must keep its word” and end the fight.

Normally, the headlines today would be dominated by the market’s response to monthly retail sales figures, but the data was basically in line with expectations and seemed to have very little overall impact on trading decisions. There was some concern that big-name retailer firms such as Macy’s (NYSE:M) lowered their outlook, but M shares actually pushed higher by the close. However, a soft tone was evident among the sector, with the S&P Retail Index slipping 2.3%, which seemed to dovetail with the soft numbers seen in today’s retail sales release. The retail sales headline figure was down 0.1%, which matched the forecast, but they were pulled . . .

The Russell 2000 has slipped to its lows on the session midday, as a weak July retail sales report and a rebound in crude oil prices have kept small caps submerged in the red.

At 12:35 p.m. ET, the Russell 2000 (NYSE:IWM) had skidded 6.87, or 0.92%, at 738.07, while the Dow slumped 165.2, or 1.42%, to 11,477.27.

The Census Bureau reported this morning that retail sales dropped 0.1% in July, down from June’s 0.1% uptick and the weakest in five months. Weak auto sales were the main culprit that dragged down sales, as a soft economy and sky high gas prices continued to take a toll on demand for cars. Sans autos, retail sales would have posted a 0.5% increase for July. However, even excluding auto sales, retail sales would have only been buoyed by consumption of gas on the part of higher prices, not higher demand. 

“This sales report marks only the beginning of the third quarter and though it is not looking very good for U.S. consumers, it wasn't quite as bad as expected,” BMO Capital Markets economist Jennifer Lee wrote in a note today. “But we could be seeing some final effects of the rebate checks here, and as they fade, real consumer spending likely fell for in Q3, the first in about 17 years.”

In other economic news, import prices soared 1.7%, which was above the forecast, and year-over-year prices were up 21.6%, the highest rate in 26 years.

The business inventory report came out at plus 0.7%, which was above the forecast for a rise of 0.4%. However, this data series is somewhat dated (June figures) and tends to have very little lasting impact on stock market traders.

Small-cap stocks took it in the chin Wednesday, with retail stocks and financial shares falling out of favor with investors amid a gloomy economic environment and the ongoing credit crisis. The Russell 2000 (NYSE:IWM) lost 5.86, or 0.80%, to 730.71.

The S&P Retail Index crumbled nearly 2% to the second-lowest close since late March. Big-name department stores like Dillards (NYSE:DDS), JC Penney (NYSE:JCP), Nordstrom (NYSE:JWN), Kohls (NYSE:KSS), Macy’s (NYSE:M) and Sears (Nasdaq:SRLD) were all deep in the red

In the financial arena, the biggest percentage loser of the day was MF Global (NYSE:MF), the giant futures and commodities brokerage firm that was split off from Man Group last year. MF shares collapsed nearly 40%, shrinking its market cap down to about $945 million in the process. MF projected a significant decline in revenue and said it would raise $300 million to repay debt via $150 million in preference shares and another $150 million in convertible senior notes.

Although the steep freefall in MF shares was an attention grabber, the bears were active throughout the financial sector. In fact, late in the day seven of the top 10 percentage declines on the Nasdaq were either banks or financial firms. Tuesday’s slide in regional banks remained in play today, with Fifth Third Bancorp (Nasdaq:FITB) sinking nearly 20% after the firm said it would raise at least $2 billion in capital and slash dividends to help overcome credit losses.

The Dow slipped to the lowest daily close since mid-March, when the market was grappling with the collapse of Bear Stearns. For the recent move, the Dow peaked earlier than the Russell 2000, hitting a high on May 19 at 13,136. From the May 19 high to today’s low, the Dow is off 8.7%, while the Russell is only down 2.9% over that same time frame (although the Russell is off 4.8% from the early . . .

Small-cap stocks extended the upward march much of the day Wednesday, lifted by tame consumer price inflation data this morning, which eased some concerns that the Federal Reserve’s tightening gun was coming out of the holster sooner than expected. However, the rally sputtered in the final hour of trading, and the Russell 2000 (NYSE:IWM) closed down 0.79, or 0.11%, at 736.07. On the face of things, it might not seem like a big deal to only lose 0.11%, but a lower close when making new five-month highs serves up a potential topping pattern on charts that raises a caution flag heading into action Thursday and Friday.

After yesterday’s glut of Fed speakers inundated the market, many traders came away with the interpretation that Federal Reserve policy makers were turning hawkish, preparing to fight inflation. However, this morning’s CPI reading was seen as a sign that inflation remains at bay — at least for now — which should buy the market some time before rate hikes become plausible. The CPI headline number came in at 0.2%, just below the 0.3% forecast, while the “core” reading, which excludes food and energy, was up 0.1%, also below the 0.2% projection.

While gains in large caps were fairly broad-based Wednesday from a sector perspective, homebuilder and retailer stocks appeared to be especially giddy about the prospect of delaying rate hikes down the road. The S&P Retail Index jumped about 1.6% on the day, with Macy’s Inc. (NYSE:M) rising about 4%. Among homebuilders, DR Horton Inc. (NYSE:DHI) was up over 2% and Lennar Corp. (NYSE:LEN) . . .

On what has been a volatile morning for markets, the Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) reversed downward momentum to head higher, as investors sorted through multiple economic data releases, mostly positive.

At 12:47 p.m. ET the small-cap index had added 1.19 points, or 0.15%, to 791.65. The Dow had gained 58.69 points, or 0.44%, to 13,364.16.

Against a backdrop of looming concerns surrounding tighter credit, which had sent stocks spiraling down at mid-morning, investors turned their attention to the positive.

The Institute for Supply Management’s non-manufacturing index, which measures activity in the services sector, reported that service activity remained flat in August from July at 55.8%. The figure clocked in above the 54.5% from July economists had forecasted.

Investors warmed up to better-than-expected same store sales for the month of August, led by Wal-Mart Stores (NYSE: WMT), which saw a 3.1% increase in U.S. same-store sales. Analysts were anticipating an uptick of 1% to 2% last month.  The world’s largest retailer said it is projecting same-store sales to increase by 1% to 3% in September.

Shares of apparel maker Kellwood Co. (NYSE: KWD) have been in tatters in recent months. More than anything, the St. Louis company behind such diverse labels as Sag Harbor, Gerber, Liz Claiborne and Phat Farm has suffered more from industry conditions than from execution of its business strategies.
 
Outside of the retail sector, few consumers would recognize Kellwood as the apparel powerhouse behind a laundry list of brands that it either owns or controls through licensing agreements. It has grown over its 46-year existence to become a company with $2 billion in annual sales, yet it remains a small-cap stock to own, with a market capitalization of about $505 million after Wednesday’s dip to a new 52-week low. 
 
Retailing is in the throes of big changes, and Kellwood is tangled up in them. Wal-Mart Stores Inc. (NYSE: WMT) has been trying to shore up its bottom line. Macy’s Inc. (NYSE: M) has struggled to absorb another St. Louis company, the former May Department Stores, which has resulted in store reductions – and fewer places to sell the Kellwood brands. During the fiscal year ended February 3, Wal-Mart accounted for 12% and Kohl's Corp. (NYSE: KSS) accounted for 11% of Kellwood’s net sales.

The retail turmoil has triggered a restructuring at Kellwood, including a facilities retrenchment and an executive shuffle. Controller and VP of finance Gregory Kleffner has taken over as chief financial officer, a title relinquished by W. Lee Capps III so that he can focus more on operations as chief operating officer.

Elizabeth Arden Inc. (NASDAQ: RDEN) is something more than just a pretty face. Despite a warts-and-all stock performance in the final four months of 2006, the company appears to have undergone a successful makeover that could benefit investors.

And at least one analyst smells the possibility of a takeover at some point, in light of recent market consolidation, of the global beauty and fragrance company.

Elizabeth Arden offers a cadre of fragrances bearing the names of such luminaries as actresses Elizabeth Taylor and Catherine Zeta-Jones, along with motorsports star Jimmie Johnson as spokesman for a NASCAR men’s line.

In addition to Taylor’s long-running White Diamonds brand and other fragrances, and Zeta-Jones, the company has continued to extend its appeal to younger potential customers, marketing products from Mariah Carey, the Brittney Spears’ Curious scent and Hillary Duff’s … with Love brand. Its other more-traditional brands include Geoffrey Beene’s Grey Flannel and Halston. For rugged, four-wheelin’ men, it also has a Hummer fragrance.

Elizabeth Arden began in 1910 as a salon founded by its namesake – who actually was Canadian born Florence Nightingale Graham. From its New York City roots along the always-trendy Fifth Avenue, the company has developed a worldwide appeal for its ever-expanding family of products that have emerged from behind its bright red door.

What started with face creams and cosmetics, Elizabeth Arden began to successfully add fragrances starting in 1935, with one called Blue Grass. Elizabeth Arden Graham was an ardent equestrian and thoroughbred breeder, and named the fragrance after the Blue Grass region of Kentucky, where she had an expansive farm outside of Lexington. Her Jet Pilot won the Kentucky Derby in 1947.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) closed at new record highs on news of better-than-expected U.S. retail sales for June. The small-cap index added 15.21 points, or 1.81%, to a new record close of 855.18. The Dow gained 283.86 points, or 2.09%, to record close of 13,861.73. Both indices previously set records on June 4.

Stocks took off as if shot out of a cannon today following news that U.S. retailers largely defied pessimistic predictions and posted modest gains in June. Bentonville, Ark.-based giant Wal-Mart Stores Inc. (NYSE: WMT) led the way, easily outpacing analysts’ projected same-store sales numbers.

That’s good news, suggesting that the American consumer is willing to spend despite higher gas prices. Retail sales make up about half of consumer spending, which in turn comprises the bulk of gross domestic product.