The markets were mixed to finish the week but mostly no one noticed as the media was focused on Amazon's big news along with the decline in retail stocks. The Dow 30 finished the day up 22, while the S&P 500 was flat, and the Nasdaq 100 lost 13. Next week begins with a few speeches from FOMC members but scheduled news is pretty light for the duration.
Amazon (NASDAQ: AMZN) was by far the most news driven story of the day as news broke early that the tech giant would be buying Whole Foods (NYSE: WFM) for $13.7 billion in all cash. The news shocked the markets along with shares of Whole Foods which were halted until twenty minutes after the markets opened. Shares of Amazon popped 2.44% on the news as investors chased to buy stock in the company. The move also has almost erased all the declines seen from last Thursday's move.
Whole Foods (NYSE: WFM) shares soared today on the news that Amazon would be buying them. Shares were lower yesterday but more than made up for it today as the stock popped 29.10%. Shares also finished near their highs of the day.
Kroger (NYSE: KR) sold off another 9.24% today following the news that Amazon would be their newest competitor. Yesterday shares sold off on earnings and comments that the company would have to play the pricing game to compete. Today shares moved to new lows as investors worried that Kroger could not play the pricing game with the pricing master, Amazon.
Wal-Mart (NYSE: WMT) was another retailer to take a hit today following the Amazon news. Shares moved lower by 4.63% as investors wondered how the move by Amazon would affect Wal-Mart's sales. For now it appears that analysts are not too concerned as the Wal-Mart consumer and the Whole Foods consumer are in different segments.