Updates

** Apparel retailer American Eagle Outfitters AEO.N shares hit more than a two-month high, last up 16.8% at $12.54

** U.S. President Donald Trump, while speaking to reporters before boarding Air Force One on Sunday, said, "if Sydney Sweeney is a registered Republican, I think her ad is fantastic"

** AEO shares climbed to a two-month high on July 24 after launching a new denim campaign featuring actor Sydney Sweeney, sparking a buzz among retail investors

** The campaign, called "Sydney Sweeney Has Great (American Eagle) Jeans", was aimed at reconnecting with Gen Z shoppers and was AEO's most expensive campaign to date

** The campaign, interpreted by many as a pun on "genes", has received online backlash. The company said on Friday its ad was "always about the jeans"

** The rally coincides with the recent surge in meme stocks, which also traded higher on the day — Krispy Kreme DNUT.O up 6.3%, Kohl's KSS.N up 2.2%, Opendoor Technologies OPEN.O up 4.3% and GoPro GPRO.O up 3.1%

** Including session's move, AEO down 25.3% YTD, compared with 5.1% drop in consumer discretionary index .SPLRCD

(Reporting by Medha Singh and Sukriti Gupta)

((medha.singh@thomsonreuters.com))