Another key retailer, Macy's, saw its shares drop after J.P. Morgan downgraded the chain's stock to "underweight" from "neutral." That sent shares falling 2.4 percent to close at $22.44.

However, the majority of apparel retailers rose with the market. J. Crew Group increased 2.5 percent to $43.02, while Urban Outfitters Inc. jumped 5.3 percent to $32.99. Wal-Mart Stores Inc. gained 1.4 percent to $57.07, and rival Target Corp. was up 2.1 percent to end the day at $53.63.

In the overall market, the Dow Jones Industrial Average gained more than 256 points to close at 12,619.27, while the broader S&P 500 grew 30.28, or 2.3 percent, to 1,364.71. The S&P Retail Index inched up 1.1 percent to end the day at 395.32.

The market rallied after J.P. Morgan Chase & Co., Coca-Cola Co. and Intel Corp. reported better-than-expected quarterly results, giving investors hope that companies are recovering from the souring economy.