Shoe Stocks Rebound

Shoe Stocks Rebound
Wall Street

U.S. stocks climbed Monday after G-8 leaders affirmed their commitment to ensure Greece remains in the euro zone.

Equities here followed most European stock markets, which rebounded from heavy losses to end higher, and Asian markets, which also surged as Chinese Premier Wen Jiabao raised hopes of further policy easing.

While the Standard & Poor’s 500-stock index added 20.77 points, or 1.6 percent, to end at 1315.99, a basket of 30 footwear stocks swung up a median of 3.7 percent, or more than twice as much as the index.

The biggest gainer was Brown Shoe Co., which last Friday reported better-than-expected first quarter results. The firm’s shares closed 9 percent higher at $11.98. Second was K-Swiss Inc., which advanced 6.3 percent to $3.06.

Crocs Inc., which appeared oversold late last week on European jitters – the firm derives 65 percent of its revenues from outside the U.S. — was the third largest gainer, climbing 6 percent to close at $16.42.

Only three firms closed lower Monday: Shoe Carnival Inc., LaCrosse Footwear Inc., and Bakers Footwear Group.

Bakers, which recently reported a fiscal 2011 loss of $11 million, or $1.18 a share, saw its stock plunge 26.4 percent.

LaCrosse fell 7.5 percent, while Shoe Carnival slipped 0.8 percent.

Meanwhile on the broader market, JP Morgan Chase & Co., still reeling from its trading losses, fell 2.9 percent. Facebook Inc.’s newly public stock, which launched at a volatile time, lost 11 percent.

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