Investors Cheer Trade Talks Even as Retailers Start Feeling the Pain

Investors dove into fashion stocks Thursday, shrugging off new warnings that the U.S.-China trade war is exacting a financial toll and betting that Beijing and Washington are finally ready to work things out with a new round of trade talks next month. G-III Apparel, which owns DKNY and has the license for several Calvin Klein products, was one of the day’s biggest winners, with its stock jumping 27 percent to close at $23.84 despite revealing earlier in the day that new tariffs would cost it $12 million. Also clocking in hefty gains were American Eagle Outfitters Inc., up 13 percent to $16.28; Signet Jewelers, 27 percent to $13.97; Gap Inc., 5 percent to $16.99; Abercrombie & Fitch Co., 6 percent to $15.42, and Nordstrom Inc., 5 percent to $31.07. The Dow Jones Industrial Average closed up 371 points to 26,728.15. Investors came into the day feeling bullish after word came that the U.S. and China were ready to sit down again next month for high-level negotiations, although the back and forth has been strained at times with previous rounds of talks scuttled at the last minute. Retail consultant Jan Rogers Kniffen said most investors are already planning for the worst-case scenario so any

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