Thursday March 20, 06:38 PM
Wal-Mart jumps to 3-year high, highlighting broad retail sector gains
NEW YORK (Thomson Financial) - Shares of Wal-Mart Inc. surged to a 3-year high Thursday, highlighting a broad rally in the retail sector.
The world's biggest retailer and Dow industrials component's stock was up 4.6% at $53.11 in mid-afternoon trading, the highest price seen since March 2005. Volume was 25.9 million shares, topping the full-day average over the past 30 days of 24.4 million shares.
The stock has now gained 12% since the end of 2007, compared with a 7.4% decline in the Dow over the same time.
The Retail Holdrs ETF (RTH) was rallying 3% to $92.28, with 16 of 17 components trading higher. Wal-Mart is the sector tracking stock's most heavily-weighted component.
Among other RTH heavyweights, Dow member Home Depot Inc (NYSE: HD - news) . was 3.7% better at $27.84, posting a year-to-date gain of 3.4%.
Elsewhere, Target Corp. gained 3.7% to $51.97, Amazon.com (NASDAQ: AMZN - news) advanced 2% to $71.56, Lowe's Companies climbed 4.9% to $23.06, Walgreen Co (NYSE: WAG - news) . slipped 0.2% to $36.31 and Gap Inc. hiked up 3% to $21.18.
A pullback in commodities prices, hopes for some easing of the financial crisis and a rally in the broader market helped lift investor sentiment toward the retail sector. The Reuters/Jefferies CRB Index fell 2% to 380.29, the SPDR Financial ETF (XLF) was running up 5.3% to $25.85 and the Dow industrials was 158 points better at 12,258. Earlier, Punk Ziegel Analyst Dick Bove said in a research note that he believe 'the financial crisis is over.'
Tomi Kilgore
tk1
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