Department stores rise along with general market

Shares of department stores rose on Monday, along with the general market, as economic data seemed to indicate the worst of the recession might be past.

A report from the Institute of Supply Management on U.S. manufacturing showed the sector contracted at a slower rate in May than the previous month. A government report showed U.S. construction spending in April grew by the largest amount in 8 months, and U.S. consumer spending in April fell slightly less than analysts expected.

The market surged on the data and by midday, the Dow Jones Industrial Average was up over 200 points. The Dow Jones U.S. retail index was up 4 percent.

Dillards Inc. was one of the biggest gainers in the department store sector, up $1.35, or 14 percent, to $10.80 during midday trading. The stock has traded between $2.50 to $16.50 during the past 52 weeks.

Shares rose across the sector. J.C. Penney shares rose $3.45, or 13 percent, to $29.54 during midday trading. Nordstrom Inc. shares rose $2.63, or 13 percent, to $22.32. Macy's Inc. shares rose $1.52, or 13 percent, to $13.20, while Saks Inc. shares rose 29 cents, or 7.6 percent, to $4.11.