Amazon is buying Whole Foods for $13.7 bn in a surprise announcement and other supermarkets quake in the wake of the news.
The blue chip index closed out the week on its fourth straight high up 0.2% or 24.52 points at 21,384.42 as energy stocks were amongst the gainers, while the S&P 500 tipped 0.03% at 2,433.15.
Nasdaq meanwhile closed down -13.74 points at 6,151.76 as tech stocks continue their rough ride. Oil price rise helped to propel energy stocks 1.6% higher.
- Dow 21,384.42 +0.2%
- S&P 500 2,433.15 +0.03%
- Nasdaq 6,151.76 -0.22%
- Russell 2000 1,406.73 -0.24%
- NYSE Composite 11,772.03 +0.27%
- Gold 1,256.30 -0.02%
- Oil WTI $44.72 -0.04%
10-Year Yield -0.01%
Supermarket shake up
Amazon's surprise sale of Whole Foods was an earth quake for grocery retail businesses Stateside but investors were positive of the move. Amazon shares went up 2.44%
So while the organic food retailer, Whole Foods, saw a near 30% change to $42.68, at the other end of the scale, other retail businesses found it hard to swallow the news as share prices dove.
The laggards were Kroger sinking -9.24%, Target down -5.14%, CostCo -7.19% and Walmart -4.65%.
Amazon enjoyed market support with investors and analysts suggesting that this deal can only strengthen both the online retailer and Whole Foods bricks and mortar operation which had been struggling recently with more intense competition.
In Thursday's trading grocery retailer, Kroger's shares plunged sharply after it announced profits would be lower than expected.
Kroger was dealing with the pressure of competitors like Amazon and Walmart moving into food and said it would make more meaningful investments in to its digital and online growth.
On Thursday, Amazon also announced a new service for its Amazon Prime members in Denver which allows one-hour deliveries of items not only from the online retailer but also Sprouts Farmers Market, another food retailer.