Sector Glance: Discount Retailers

NEW YORK (AP) -- Discount retailer shares rose Friday after Dollar Tree Stores Inc. said it would buy back $100 million of its shares in an accelerated share repurchase program with Merrill Lynch International.

The company plans to pay Merrill Lynch the $100 million in exchange for about 1.6 million shares and will then receive additional shares within a few months.

Goldman Sachs analyst Adrianne Shapira said in an analyst note the share buyback acceleration "should be viewed postively" and that once the program is complete, another authorization is "highly likely."

Elsewhere in the sector, Fred's Inc. shares fell slightly for the third day after the company said its second quarter profit dropped. The company also cut its fiscal-year earnings guidance.

Here is how some key discount retailer stocks did Friday:

Big Lots Inc. rose 79 cents to $29.77.

Family Dollar Stores Inc. gained $1.07 to $29.28.

99 Cents Only Stores increased 40 cents to $12.35.

Tuesday Morning Corp. climbed 21 cents to $10.55.

Fred's Inc. slipped 4 cents to $10.40.

Duckwall-Alco Stores Inc. added 20 cents to $37.85.

Dollar Tree Stores Inc. rose $2.99 to $43.45.