Footwear stocks swung up Monday on signs of progress toward a compromise in Washington on the impending “fiscal cliff,” outperforming benchmark indices.
U.S. lawmakers expressed confidence on Sunday that they could reach a deal to avert the $500 billion worth of tax increases and spending cuts that would commence on Jan. 1, but the market remains highly sensitive to news reports to the contrary.
A basket of industry stocks tracked by Footwear News closed 3.2 percent higher, and only one of the 24 counters tracked ended the trading session in the red.
The biggest gainer was Deckers Outdoor Corp., which closed 8.6 percent higher, at $33.59.
Hibbett Sports Inc. lost 1 percent to $53.50, even after it beat third-quarter estimates and raised its guidance last Friday.
Meanwhile, the Standard & Poor’s 500-stock index leapt 2 percent by the end of trading, while the Dow Jones industrial average advanced 1.7 percent. The Nasdaq composite index added 2.2 percent.
European markets also rallied on speculation of the U.S.’ fiscal progress. France’s CAC 40 index jumped 2.9 percent, Germany’s DAX gained 2.5 percent, while the Stoxx Europe 600 climbed 2.2 percent.