Shares of Designer Brands (NYSE: DBI) finished up 11% today as part of a broad wave of retail stocks that gained after Democrats reclaimed the Senate last night, winning two elections. After winning the House and the presidency in November, the victory last night means it will be much easier for the Biden administration to implement its agenda.
Among the moves it is expected to make is handing out $2,000 stimulus checks as was recently debated in Congress but blocked by Senate majority leader Mitch McConnell. After last night’s results, McConnell will no longer be majority leader.
Designer Brands, which is the parent of DSW, finished the day up 11.1%. The SPDR S&P Retail ETF (NYSEMKT: XRT), meanwhile, rose 4.1%, and the small-cap index Russell 2000 gained 4% even as the Nasdaq fell, showing a rotation into recovery stocks, including retailers, on the news.