GOOD MORNING. Stocks in Asia closed higher today, European shares are up, and U.S. futures are pointing to a slightly lower open.

With a series of optimistic economic indicators released on Thursday, it looks like the Dow Jones Industrial Average could hit the 11,000 threshold within a few days. Giving the exchange an extra push are retailers, which are faring better than most in private-sector forecasts. This morning, Perry Ellis International (PERY) announced its financial results for the fourth quarter and fiscal year 2010, which show a strong fourth quarter and continued growth propping up the company. Fourth quarter revenue totaled $196.4 million, up 3% compared to $191.2 million in the fourth quarter of fiscal 2009. This increase follows a “turnaround of Perry Ellis Collection at department stores” and “improved performance in direct to consumer businesses,” according to a company statement.

Analysts say that following declining revenues last year, the company returned to its classic men’s modern sportswear and saw an uptick in sales. “A lot of their core business grew in their holiday quarter [because] the customer feels they’re getting great quality and great value for the price,” says Paula Torch, who covers Perry Ellis and is vice president of equity research at Needham & Company, an investment banking and asset management firm. In the near-term, Ellis is also expected to grow off new initiatives, which include distributing a golf apparel collection under the TOP-FLITE brand at Kmart (SHLD).

As consumer confidence increases and pent-up demand from a lack of shopping in 2009 grows, analysts say consumers with disposable income will increasingly return to shopping at a caliber above the discount stores, which served as consumer staples during the recession. Last month, Phillips-Van Heusen Corporation (PVH), whose brands include Calvin Klein, DKNY, Michael Kors and Kenneth Cole New York, raised guidance for its fourth quarter figures and estimated revenue of $612 million for the fourth quarter, up 9% from the prior year’s fourth quarter. Meanwhile, the “new reality” that is settling in of not-so-deep consumer pockets is influencing designers and high-end department stores to rethink quality and pricing – lowering them slightly in order to attract consumers and boost sales, says Brian Sozzi, research analyst at Wall Street Strategies, an independent equity research firm.

And despite a stubbornly-high unemployment rate, the Commerce Department’s report on March 12 of an unexpected 3% growth in retail sales (excluding cars) in February and a 3.9% increase over the past year suggests that growth in retail equities will continue in 2010. Yet another sign of consumers’ increased willingness to spend – according to the Wall Street Journal, J.D. Power & Associates is forecasting that U.S. car sales in March will hit the highest level in 18 months (excluding last August when “cash for clunkers” increased sales).

IN OTHER NEWS:

  • On Friday, China announced that it will send an envoy to Washington for discussions on the yuan, which U.S. officials claim China is keeping superficially low. As of now, China hasn’t indicated that it will allow the yuan to rise. LINK
  • Further problems could be ahead for the euro as Germany appears to have backtracked from rescuing Greece’s ailing economy. It’s possible that Greece will now turn to the International Monetary Fund. LINK
  • In after-hours trading, smartphones provider Palm (PALM) shares fell following a weaker-than expected outlook for the fourth quarter due in part to decreased sales. LINK

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