Stocks End Monday In The Red

Stocks End Monday In The Red
Wall Street

Industry stocks seesawed Monday to end slightly lower, after relief over the Greek election outcome gave way to renewed anxiety about the future of the rest of the euro zone.

While victory was handed to Greece’s New Democracy, the center-right party that supports the broad outline of an international bailout designed to keep the country in the euro zone, borrowing costs in Spain exceeded 7 percent.

A basket of industry stocks tracked by Footwear News fell an average of 0.6 percent. Thirteen firms closed the day higher, 13 closed lower, while three ended flat.

Meanwhile, the Standard & Poor’s 500 Index eked out a 0.1 percent gain to close at 1,344.78 points.

The biggest gainer was Heely’s Inc., which closed at $1.90 a share after rising nearly 3 percent. Dick’s Sporting Goods Inc., Deckers Outdoor Corp. and Hibbett Sports Inc. followed closely behind, each rising nearly 2 percent.

But the biggest loser of the day was DSW Inc., which separately announced it was lowering its guidance for the second quarter due to an acceleration of clearance sales in the quarter, which hurt margins.

The firm said second-quarter EPS is expected to come in between 60 cents and 64 cents a share, which will be down from 74 cents in the same quarter a year ago. The news sent the firm’s shares down 11.3 percent to $52.13.

Steven Madden Ltd. logged the second largest decline of the day, at 5.5 percent.

Analysts called both pullbacks overdone.

“We continue to like the [second half] and longer-term story [at DSW] and would be buyers on today’s pullback,” said Susquehanna Financial analyst Christopher Svezia.

Camilo Lyon, analyst at Canaccord Genuity, noted that Madden, an important vendor at DSW, “is trading down in sympathy. We believe the decline in Madden’s shares is overdone and would use it as a buying opportunity.”

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